The amendments introduced are aimed at eliminating the difficulties generated by the previous regulations and the legal uncertainty they created in the application of exemptions to cross-border transactions. In fact, these obstacles were leading to a decrease in intra-Community trade between entities located in different parts of the European Union.
In addition, the amendments that have entered into force also seek to reduce fraud in cross-border transactions by specifying the circumstances in which goods are to be considered as having been dispatched or transported from the territory of the Member State of supply.
To this end, the Regulation adds two rebuttable presumptions to prove which of the parties has carried out the intra-Community transport of the goods.
The first of these considers the seller to have carried out the intra-Community transport of the goods (or a third party has done so on his behalf) when he has at least two of the following items of evidence which have been issued by independent parties:
– Signed CMR documents
– Bill of lading
– Air Freight Invoice
– Invoice from the carrier of the goods
And, in addition to the items listed above, at least one of the following pieces of evidence that have been issued by independent parties:
– Insurance policy relating to the transport of the goods or bank documents proving payment.
– Official documents issued by a public authority, such as a notary or notary public, attesting to the arrival of the goods in the Member State of destination.
– Receipt issued by a warehousekeeper in the Member State of destination confirming the storage of the goods in that Member State.
The second presumption allows the seller to consider that the carriage has been performed by the buyer (or by a third party on its behalf). For this purpose, in addition to the documents required of the selling party, he is required to be in possession of a written declaration from the purchaser certifying that the goods have been dispatched or transported by him or by a third party on his behalf and stating the Member State of destination of the goods.
These modifications will oblige companies that make intra-Community deliveries to have all the documentation indicated in order to accredit the reality of the intra-Community operation and to be able to apply the exemption set out in the VAT regulations.