KPMG Issues Guidance on Changes to EU VAT ID Numbers

KPMG on Dec. 20 released an alert on value-added tax identification numbers in the European Union’s upcoming “quick fixes” VAT reform system, which takes effect Jan. 1, 2020. The identification numbers will be used to apply exemptions for supplies within the EU, KPMG said. Previously, VAT exemptions could not be refused “merely because of the fact that the supplier did not receive a valid VAT identification number from the customer.” With the upcoming change, the use of a valid identification number of the customer will be “a material condition of the VAT exemption for intra-Community supplies,” KPMG said. If the customer does not provide a valid number, the supplier “cannot apply the VAT exemption and will need to invoice local VAT of the EU Member State of dispatch of the goods.”