Proof of Transport on the Basis of the New EU VAT Law
By Pasquale Della Corte, COMMA 10
Regulation (EU) 2018/1912 has introduced a presumption of proof of transport of goods from one member state to another member state in intra-community transactions effective from 01 January 2020.
The presumption distinguishes the case in which the transport is carried out by the vendor, or by a third party on the vendor’s behalf, or by the acquirer, or by a third party on the acquirer’s behalf.
In both cases, the vendor, alternatively, must be in possession of specific non-contradictory documents issued by independent parties (compared to the vendor and the acquirer) and different parties (e.g. carrier and freight forwarder). In particular:
- At least two of the following: a signed CMR document, bill of lading, airfreight invoice, invoice issued by the freight forwarder; or
- At least one of the documents referred to above, in combination with one of the following: an insurance policy relating to the transport of the goods or bank documents proving payment for the transport; offcial documents issued by a public authority which confirm the arrival of the goods in the member state of destination; a receipt issued by a warehouse keeper in the member state of destination that confirms the storage of the goods in that member state.
Additionally, where the acquirer is responsible for the transport, the vendor must also receive a statement from the acquirer, by the tenth day of the month following the supply, stating that the goods were transported by the acquirer or by a third party on the acquirer’s behalf, and that identifies the member state of destination of the goods. In addition, the statement must indicate the date of issue, the name and address of the acquirer, the quantity and nature of the goods, the date and place of arrival of the goods, the identification number of the possible means of transport supplied, and the identification of the person accepting the goods on behalf of the acquirer.
The tax authority may rebut the presumption in the case in which the tax authority demonstrates that the goods were not transported from one member state to another member state.
Pasquale Della CorteGGI member firm
Chartered Accountants & Lawyers, Advisory, Auditing & Accounting, Corporate Finance, Tax
T: +39 02 481 9258
COMMA 10’s cornerstone is the professional collaboration between chartered accountants and lawyers and it offers its clients complete and inter-disciplinary services related to accounting, corporate, and tax services, in the legal area and, referring to the business area, corporate restructuring, and bankruptcy. COMMA 10 is based in Milan and provides integrated services to individuals and private and public companies, as well as non-profit organisations.
Pasquale Della Corte is a Chartered Accountant and has over ten years of experience in VAT and international tax, advising foreign companies with subsidiaries and branches in Italy. He is also a member of the study commission for non-profit institutions of the Institute of Chartered Accountants of Rome.
Published: Indirect Taxes Newsletter, No. 10 Spring 2020 l Photo: sergioboccardo - stock.adobe.com