According to the European Commission, rules for B2B trade within the European Union are about to be changed as of 1 July 2022 (or – what is more realistic – in 2023).
The European Commission plans to classify a cross-border trade between EU countries as an ‘intra-Union supply’, which will be taxed in the Member State where the transport ends (and not as it is now as intra-Community supply and intra-Community acquisition of goods accordingly by the supplier and the purchaser). Thus the proposed changes aims to define transaction within the EU as single taxable supplies in the EU country where the transport ends. In such a case it will be the supplier liable for VAT in the country of destination of the goods. Settlements of VAT due should be done via the One Stop Shop (OSS) system which is going to be extended with a new functionality (or – if desired by the supplier – based on its registration for VAT in the Member State of arrival).
What is important to note – such definitive VAT system for Intra-Union B2B trade is not a new idea. This solution is developed since 2018 and it seems that finally it has a chance to be introduced.
As your Polish tax advisor we are able to help you effectively utilize the above-mentioned information in your business, and also provide comprehensive support for your company.