Quick fix on Evidence of intra-Community supplies

The Directive will now require at least two non-contradictory evidence to support a zero-rated intra-Community supply

10 September, 2019

The EU will harmonize VAT rules on four key areas of international trade. Most businesses involved in intra-Community trade should review and take action from these changes. This article is part of a series of Marosa articles about the changes announced.

On January 2020, four changes will be introduced at EU level to simplify and provide legal certainty over VAT rules on international trade.

  • EU wide simplification on consignment stock. A harmonized simplified regime will apply.
  • More importance of customer´s EU VAT number. It will become a material requirement for zero-rated intra-Community supplies.
  • Simpler proofs on intra-Community supplies. Less and more flexible record keeping.
  • Uniform rules on chain transactions. Additional guidance on where to allocate the intra-Community transaction in chain transactions

This article covers the new rules on documentation to be provided by the supplier in order to proof a zero-rated intra-Community supply.

New criteria on evidence of intra-Community supplies

These changes are aimed at harmonizing the current rules on the documentation to be kept by taxpayers in order to proof that an intra-Community supply has been made.

One of the main conditions to allow a zero-rated intra-Community supply is to prove that the goods were transported from one EU country to another. The conditions and criteria for this proof change from one country to another. As from 1 January 2020, it will be sufficient to provide two non-contradictory evidential documents that proof the effective transport of the goods. These documents must be issued independently from each other. For example, transport insurance documents in combination with a proof of arrival of the goods. Also, a signed CRM would be accepted as independent evidence for these purposes.

The other 3 quick fixes

You can find more information about the remaining EU changes as from 2020 in our dedicated articles about each change:

Contact Marosa for any question or remark on how to adapt your business to the 2020 changes introduced by the Four Quick fixes.


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