The UK is one of 13 EU member states participating in a VAT dispute resolution pilot, which will allow businesses expecting to participate in complex cross-border transactions to receive a ruling in advance.
The pilot began in June and runs until the end of the year, and is open to businesses trading between two or more of the participating member states. It will allow tax authorities in the member state where the business making the request for a ruling is registered for VAT purposes to consult, and share information with, tax authorities in the member state where the trade is taking place where this is explicitly requested.
However, in a note on its website, HM Revenue and Customs (HMRC) said that there was “no guarantee” that tax authorities in different member states would be able to agree on the correct VAT treatment of the situation envisaged if a request for a ruling was made.
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