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Complex cross-border transactions

by | Jul 28, 2013 | ACCA, VAT

This Content Was Last Updated on February 9, 2017 by Jessica Garbett

 

Businesses can now get cross-border rulings for complex cases where VAT rulings are required.

The UK, together with 12 other countries within the European Union (EU), is participating in the cross-border pilot scheme.

The pilot runs until 31 December 2013; taxable persons planning cross-border transactions between one or more participating member state may wish to ask for a ruling in regard to transactions.

Businesses will be invited to introduce their request for a cross-border ruling in the participating member state where they are registered for VAT purposes. All requests must meet the conditions set by the VAT rules for the member state and where there are two or more companies involved only one request need to be submitted.

As stated, a cross-border ruling can only be requested if the transaction(s) envisaged are complex and have a cross-border aspect (in two or more member states participating in the text case). The pilot also allows for the sharing of data and information between tax authorities. Therefore the taxable person introducing a request for a cross-border ruling or taxable persons involved in the transaction must accept that the data provided can be shared with the tax authorities of the member state(s) concerned.

All requests must be accompanied by a translation into the official language of the participating member state. The countries involved together with the accepted translation languages are:

  • Belgium – EN, FR & NL
  • Cyprus – EN & EL
  • Estonia – EN & EE
  • France – EN & FR
  • Hungary – EN & HU (HU is always requested)
  • Latvia – LV & EN
  • Lithuania – EN & LT
  • Malta – EN & MT
  • Netherlands – EN & NL
  • Portugal – EN & PT
  • Slovenia – EN & SL
  • Spain – EN & ES (both EN and ES are requested)
  • United Kingdom – EN.

It is worth noting that member states will be sharing information and consulting between tax authorities.

To participate in the pilot, requests must be sent to (click on the name to send an email):

  • Malta

    VAT Department, Centre Point Building, Ta’ Paris Road, Birkirkara, Malta

 

For further details on EU VAT rates along with other useful information, view ACCA’s Analysis of VAT across the European Union which produces a helpful analysis of the 28 EU countries that includes details on:

  • what VAT is called
  • the EU country code
  • the standard rate of VAT
  • the form of the VAT registration number
  • the normal filing period
  • government website details to access further information.

Article contributed by ACCA