In 2020, in connection with the new directive, a number of changes will come into force in the field of this tax, intra-Community supplies of goods and services, and rules related to the supply chain. Some provisions are clarified by implementing judgments of the Court of Justice of the EU.
Intra-community supply of goods, supply chain and triangular trade
The new regulations quite precisely define the initial delivery conditions. One of them is checking the status of an active VAT payer. The taxpayer number must be stated on the invoice and then on the summary declaration.
The second condition is the need to prove the shipment, and the seller must have at least two pieces of evidence, e.g. payment for transport and the delivery note itself.
At the same time, for a three-way delivery to take place, it must be made between entities from three different countries, and the transport should be secured by an intermediary (personally or by order).
The regulations related to chain supply are also clarified, i.e. those in which there is at least one intermediary, but the goods are transported directly from the first supplier to the last recipient, and intermediaries only re-invoice. In these situations, only the intermediary that organizes (i.e. orders and pays) transport can apply the zero rate. Other actors in the chain must register as a foreign VAT payer in the respective country.
Intra-community supply of services
As regards the need to prove the EU VAT number for the delivery of goods, it can be assumed that this obligation will also apply to services. In the absence of an active EU VAT number, the obligation to issue an invoice with the input national tax or - in the case of online services - the input tax of the recipient's country under the simplified regime (MOSS).
Reverse domestic chargé
From July 2020, the Czech government wants to introduce an unlimited obligation to use Reverse chargé (transfer of the tax obligation similar to intra-community supplies) for all domestic transactions with a value above EUR 17,500. The European Commission has already given its consent. The final decision rests with the EU Council, but a positive decision can be expected.
Changes in VAT rates
In connection with the introduction of the obligation to fiscalise (electronic revenue records) for all entities accepting cash payments, the amendment to tax regulations lowers the tax rates on selected goods and services:
Up to 10% for electronic magazines and newspapers, brochures and albums, hairdressing and catering services, bicycle repair, cleaning services, books and e-books.
The new rates will take effect on 1.4.2020.