The pilot of the EU VAT CBR has started
Poland has joined the pilot of the new system within the European Union VAT EU Cross-Border Rulings.
VAT EU CBR is to give certainty to taxpayers on the application of the correct VAT rate when an entrepreneur plans to expand his business to other countries. The new procedure will be an agreement between the Head of KAS and administrations of other member states. 18 countries have joined the pilot: Poland, Belgium, Denmark, Ireland, Estonia, Spain, France, Italy, Cyprus, Latvia, Lithuania, Malta, Hungary, the Netherlands, Portugal, Slovenia, Finland and Sweden.
– The EU VAT CBR pilot scheme is intended to reduce the risk of differing interpretations by the cooperating tax administrations of EU Member States of the same factual or legal situation relating to a transaction carried out by a taxpayer. All this is to be one of the elements of avoiding double VAT taxation. This will also reduce the number of disputes in this respect – notes Andrzej Kapczuk, tax advisor, partner in Thedy & Partners.
So what to do if we want to participate in the pilot program? It is necessary to apply to the National Tax Administration with the Preliminary CBR Application and after its acceptance by KAS, with the CBR Application. Such action will allow to agree, at the request of the taxpayer, the interpretation of the VAT law in cross-border issues with the tax administration of the EU member state that joined the VAT EU CBR pilot project.