Cross-border VAT dispute system trialled across EU

A CROSS-BORDER VAT dispute resolution system is being trialled across 13 EU nations, including the UK.

The mechanism sees UK VAT-registered businesses expecting to be involved in cross-border transactions to one or more participating member states able to request a ruling from HM Revenue & Customs.

If the request is accepted, the member states will consult on the issue, although HMRC warned “there is no guarantee that they will agree on the correct VAT treatment of the situation envisaged”.

The nations involved in the trial are: Belgium; Estonia; Spain; France; Cyprus; Lithuania; Latvia; Malta; Hungary; Netherlands; Portugal; Slovenia; and the UK

The trial will be completed on 31 December.

Related reading

tax dictionary