On 1 January 2020, an amendment of the EU VAT Directive entered into effect; it brings, among other things, a change in the rules for reporting supplies to consignment warehouses. The change applies to taxpayers supplying goods to their customers to consignment warehouses located in other EU member states. The Czech Republic has not yet completed the process of implementing the amendment, meaning that it is currently up to the taxpayers themselves whether they will follow it or whether they will adhere to the rules currently applicable in the Czech Republic.
If the taxpayers opt for the first possibility, they will newly have to report both the transfer of the goods to the consignment warehouse and its subsequent sale in the EC Sales List. In relation to the new obligation, the General Financial Directorate issued a template of the new EC Sales List form in XML format, which now includes a section for reporting the transfer of goods in which the payer states the tax ID of the anticipated customer and some other information (e.g. record of subsequent sale of the goods to a different customer, or return of the goods to the Czech Republic if this takes place).
The updated electronic EC Sales List form is available for download on the website of the General Financial Directorate.
Do you know what obligations the new VAT rules, the so called “quick fixes”, will bring? You will learn all the important information in our article.
Keep in mind that not just the form has changed
The change in the rules for reporting supplies to consignment warehouses is not limited solely to the changes in the EC Sales List form. The amendment to the EU Directive and the VAT Act additionally introduces numerous general conditions that all companies wishing to use the simplified procedure for the reporting of these supplies will have to meet. For this reason, we recommend reviewing whether your company will be able to meet these conditions. If not, there is a risk that you will have to register for VAT in the member state to which the goods are supplied.
taxCube will also adapt to the new rules
The taxCube tool, which simplifies and helps automate the preparation of VAT and Intrastat reports, of course takes these legislative changes into account. It will provide its users with the possibility to enter the data into the new section of the EC Sales List directly during its preparation in the application. As a result, users will not have to adjust their accounting systems or modify the EC Sales List in the EPO application. Instead, they will obtain the form directly from taxCube in XML format, ready to be submitted to the tax authorities.
For more details on taxCube, visit our website or do not hesitate to arrange a meeting with us.