In March 2015, the EC announced the extension of its pilot scheme for cross-border VAT rulings. The scheme was established to enable taxpayers to obtain rulings in relation to complex issues of cross border VAT. The scheme currently has 15 member states (including the UK). The scheme will now extend until the end of September 2018.

Under the scheme taxpayers are able to request rulings on planned transactions which are complex and involve a cross-border element involving two or more participating states.

Requests are sent to the revenue authority of the state in which they are VAT registered. Clearly, making a request for a particular ruling is no guarantee that a ruling will be made, and taxpayers should appreciate that details they supply to one taxing authority are likely to be shared with others. A further disadvantage to the scheme is that no timescales are provided by which a state must reply, rulings are only to be made “as soon as possible”, however, overall the scheme does offer a degree of certainty for businesses.

To read the EU Commission’s page on Cross Border Rulings click here.