UPDATES in the VAT for intra-community regime of goods as of March 1st, 2020


The aim of the update is to achieve a simplified and uniform taxation of intra-Community operations in all Member States.

Among other modifications, it is established that the shipment of a good to a customer’s warehouse in another Member State will not be considered as an intra-Community transaction until the customer removes the merchandise from that warehouse.

Until now it was considered that there was a transfer of goods, that is, that the seller performed an operation assimilated to an intra-community delivery of goods in the State of departure and an operation assimilated to an intra-community acquisition of goods in the State of arrival, and at the time of acquisition by the customer, an internal delivery was made with the application of the tax rule of the taxpayer.

With the modification, another regulation is established: the agreements for the sale of goods in consignment. They take place when an entrepreneur makes a transfer of goods from a Member State to the territory of another Member State in order to maintain a stock of product in the facilities of its customers in order to expedite deliveries as needed.

Provided that certain requirements are met, there will be an intra-community delivery of exempt goods in the State of departure in charge of the supplier and at the time of acquisition, an intra-community acquisition of goods by the customer. These requirements are, summarized:

  • That the seller is not established or has a permanent establishment in the Member State of arrival of the goods.
  • That the client has a NIF-VAT in the State of arrival of the goods, and their identity is known at the time of the start of the transport of said goods.
  • That both parties keep an exhaustive control and registration of the goods delivered under this sales system.
  • That the sale of the client occurs within 12 months after the arrival of the goods to the Member State to which they have been transported. After this period has elapsed without the sale, it will be understood that there has been a transfer of goods.

To guarantee these measures to simplify the sale of consigned goods, businessmen and professionals must keep specific records books referring to these operations. For those receiving SII, the obligation to carry these books through the AEAT electronic headquarters is delayed until January 1st, 2021.