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VAT News N° 2 2017

Welcome to our monthly VAT News intended for companies having activities across the 28 Member States.

You will find here below updated information and schemes on a country-by-country basis.

Germany, Hungary, Italy, Portugal & Romania .



Preconditions for the exemption of an intra-Community supply 

A Portuguese company sold goods to a Spanish client. The latter was registered for VAT purposes in Spain for domestic transactions under an identification number which appeared on all invoices relating to sales in question and in the accompanying summary statements.  By contrast, at the time those sales were performed, that company, which was subject to VAT, did not come under a system of taxation on intra-Community acquisitions and was not registered in the VIES system.

The Portuguese company declared those sales as intra-EU supplies, which were thus exempted according to Article 138 (1) of the VAT Directive. However, the Portuguese VAT authorities considered however that the conditions for the exemption were not met since the Spanish client was neither registered for intra-Community transactions in Spain nor registered in the VIES system. The Portuguese VAT due together with interest for late payments had consequently been adjusted. The Portuguese company contested those adjustments.

The European Court of Justice disagrees with the position taken by the Portuguese tax authorities. Neither Article 138(1) of the VAT Directive nor the Court’s case-law, mention — as one of the substantive conditions, listed exhaustively, for an intra-Community supply — the obligation for the purchaser to have a VAT identification number nor, a fortiori, the obligation for the purchaser to be registered for the purpose of carrying out intra-Community transactions and to be registered in the VIES system.

(Euro Tyre BV –C-21/16 of 09/02/2017)


Call-off stock – New decision from German Federal Court (BFH 20/10/2016, V R 31/15)

According to the German tax authorities, the supply of goods from other EU Member States via call-off stock located in Germany should be deemed to be an intra-Community supply of goods followed by a domestic supply by the supplier. This results in general in VAT reporting obligations for the supplier in Germany. The BFH however ruled that a supply via a call-off-stock where the final customer was identified at the beginning of the transfer from the EU Member State of dispatch and where a binding order existed on that date should be considered as a direct intra-Community supply.

Should you wish to verify correct VAT treatment for the movement of your goods to a warehouse in Germany, please contact Bernard Ickowicz (This email address is being protected from spambots. You need JavaScript enabled to view it. ).



VAT rate on restaurant services

Since 01/01/2017, VAT rate on restaurant services, excluding alcoholic beverages has been reduced from the standard 27% VAT rate to the 18% reduced VAT rate.


Real-time reporting

As from 01/07/2017, foreign companies issuing invoices with VAT amount exceeding HUF 100,000 (+/- € 320) will be required to provide real time data regarding these invoices. Failure to comply with these new rules could result in fines of up to HUF 500,000 (+/- € 1.600) per each undeclared invoice.



VAT refund – Bank guarantee – New threshold

Italy has raised VAT refund guarantee threshold from €15,000 to €30,000. This means that no more bank guarantee is required if the VAT credit is under € 30,000. Above €30.000 the taxable person will still be obliged to provide a bank guarantee.



Deferred payment upon importation 

Introduction of a new deferred payment upon importation should take place in September 2017.

Should you wish to implement deferred payment for your importations in Portugal, please contact Bernard Ickowicz (This email address is being protected from spambots. You need JavaScript enabled to view it. ).




Repeal of Register of intra-EU Operators

The obligation for a taxable person to register in the Register of Intra-Community Operators to access the VIES database and be able to use its VAT identification number for intra-EU transactions has been repealed since 01/01/2017.

Repeal of VAT registration form 088

The obligation to submit form 088 Affidavit to assess the intention and capacity to undertake economic activities involving taxable operations when registering for VAT purposes has been repealed since 01/01/2017.



See also our lasts VAT news: 

VAT News N° 4 2016

VAT News N° 3 2016

VAT News N° 2 2016

VAT News N° 1 2016

VAT News 08

VAT News 07

VAT News 06

VAT News 05

VAT News 04


Are you interested to receive more information about this topic or to discuss your specific case with a VAT expert? Do not hesitate to send us an email or set up a free conference call with us.



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