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Article: ZD Academy Seminars 2020 - Chain Transactions

9 Mar 2020

Article: ZD Academy Seminars 2020 – (VAT)


Topic: Chain Transactions

Date: 5th February 2020

Author: Charles Vella

The seminar covered one of the measures set out in the so called “Quick Fixes” amendments introduced in the VAT Directive with effect from 1st of January 2020, and specifically the “VAT treatment of cross-border chain transactions”. The new rules are intended to settle in clear terms the issue of which one of the successive supplies in the chain is the intra-community transport of the goods to be ascribed.

The agenda, which focused on navigating the complexities of chain transactions included a summary on the background, the scope of the new rules, the legal aspect and last but not least the practical aspect. It was hoped and expected that at the end of the seminar, the participants will have obtained a better understanding of chain transactions, to confidently analyse them with a view to identify a correct VAT treatment.

The presentation dealt with the technical and legal aspects concerning the new simplification rules for chain transactions with emphasis on the essential conditions required to be fulfilled for the simplification to apply. The different functions of the persons participating in a chain transaction, namely the first supplier in the chain, the intermediary operator and the final customer was explained in detail followed by an examination of scenarios where the transport of the goods, which has to be a continuous single transport, could be fractioned or broken under certain circumstances. At the end of the presentation, two case studies were set out for the participants to enable them to assess their grasp of the subject matter during the presentation.

From an assessment of the evaluation forms furnished by the participants, namely 64% excellent rating and 36% very good rating, it is reasonable to consider that the seminar was very well perceived and received. Of interest, is that the practical scenarios were considered as the most interesting feature, whereas one participant (attending for the first time a ZD Academy seminar) commented her satisfaction that the group was a small one.