Creation of certainty on VAT treatment of complex cross border transactions – Cross Border Rulings Project extended until 2018 by EU Commission

Christoph Zenner 4 April 2015


The VAT Cross Border Rulings Pilot Project has been set up for taxable persons to obtain advance rulings on the VAT treatment of complex cross border transactions. Cross border rulings (CBRs) create certainty, thus mitigating the risk of double taxation and related disputes.

The EU pilot project started in 2013 and now involves 15 Member States. The EU Commission has just decided that the pilot project will run until 30 September 2018.

Whereas a number of businesses decided not to pursue a CBR due to the initially limited time frame of the pilot project, now is the time to apply for one to get certainty on intra-Community transactions.

Through the pilot project, CBRs have already been given on the following subjects:

  • organizing a symposium to present new products to clients
  • place of supply of goods and services and correct accounting process following business restructure
  • supply of SIM cards for mobile phones
  • transformation of crude oil
  • supply chain, intra-Community sales and the possibility to divide an intra-Community supply into a transfer followed by a local supply

Source: http://ec.europa.eu/taxation_customs/taxation/vat/traders/cross_border_rulings/index_en.htm

For more information, please contact your regular PwC advisor.