Amendment to Value Added Tax Act effective from 1 September 2020

The amendment to the VAT Act effective from 1 September 2020 contains the following changes:

• Classification of transport in a chain supply of goods within the EU - only one transaction includes the transport (cross-border) and the given transaction is VAT exempt.

• A new regime of consignment stock - if the substantive conditions are met, then a transport of the goods within the stock regime is not considered a supply of goods or acquisitions of goods for consideration.

• Supply of goods to another member state tax exempt - greater importance of the tax identification number for exemption of supplies.

• New requests for evidence of transportation to the EU for tax exempt supplies of goods to another member state (a signed document or bill of landing, an invoice for the transport services, official documents etc.).

A part of the amendment to the VAT Act is a provision on a special regime for a travel service. The provision will be effective from 1 January 2022.