On 4 October 2017, the European Commission launched its first proposal for taxing intra-EU supplies. This proposal is the first step in removing VAT zero rating (and reverse charging) for intra-EU business-to-business goods supplies and taxing them where received.
Other measures included proposals concerning the one-stop shop, introducing the concept of “certified taxable person”, the simplification of VAT administration for certified taxable persons and the modification of requirements for zero-rating (where applicable).
Under the proposals, certified taxable persons will be able to continue applying the current rules (ie to apply a zero rate of VAT to intra-EU transactions, with the reverse charge applying) although this is only intended to be a transitional arrangement pending extension of the proposal to supplies of services.
A copy of the proposal is available to view here.