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Tax - quick fixes VAT intra-Community trade

As of 1 January 2020, new EU VAT rules have entered into force with regard to goods which are delivered from one EU member state to another, the so-called “quick fixes”. These apply to all sectors, including to diamonds.

The quick fixes touch upon amongst others the following topics:

  1. Evidence rules for intracommunity supplies: when particular documents proving the transport of goods from Belgium to another EU member state can be provided, an assumption is created that the good have indeed been delivered to another EU member state and that one could rightfully apply a VAT exemption for this intra-Community delivery. 
  2. When stock is held in another EU member state (e.g. by sending goods to a potential customer in another member state on consignment for a longer period of time), certain conditions need to be met to avoid that one has to register for VAT purposes in the country where this stock is held.
  3. Check on valid VAT number of the client: as of 2020 one can only apply a VAT exemption for intra-Community trade if one first verified the validity of the VAT number of the client from the other EU member state before the transaction.
  4. EU cross-border chain transactions: if there is a successive supply of goods between 3 taxable entities and the goods are shipped directly from the first supplier to the last customer in the chain, it is now clarified which transaction in the supply chain can be exempted from VAT.

AWDC has drafted an extensive Q&A on these quick fixes, applied to the diamond trade. You can consult this document by clicking on the 'Documents' section below at this page and downloading the Q&A from there.

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