Cross Border VAT Rulings

Eighteen Member States are currently participating in a trial project involving VAT rulings for cross-border transactions.

The European Commission has published an Information Notice providing details of a trial for private VAT ruling requests relating to cross-border situations. Eighteen Member States are currently participating in the project, including the UK, Spain, France, Italy and the Netherlands.

Under the project, taxable persons planning a cross-border transaction in one or more of these Member States may request a ruling on the VAT treatment from the tax authority in the Member State where they are registered. The request should, in principle, be submitted in the normal form for a national VAT ruling.

A cross-border VAT ruling can only be requested if the transaction envisaged is complex and has a cross-border aspect involving two or more Member States participating in the project. Applicants should provide a detailed and clear description of their situation/transaction and of their opinion and/or doubts with regard to the applicable VAT treatment. In addition, the applicant should explicitly request that the Member State to whom the request is made should enter into consultations with other affected Member States.

Once a request is made, the Member States concerned will consult each other. However, the cross-border ruling process does not guarantee that the Member States will agree on the VAT treatment of the transactions envisaged or will issue an agreed cross-border ruling.

The intention is that decisions should be taken as soon as possible, but national rules with regard to reply deadlines will not automatically apply to these cross-border ruling requests.

Further details on the project, process and, in particular, the relevant national contact in each participating Member State can be found in the Information Notice released by the EU Commission.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.