Wednesday, September 15, 2010

EU About to Simplify VAT Collection Rules in Relation to Centralized Customs Clearance?

(Lexology – Erik de Bie, Greenberg Traurig LLP)

The European Commission circulated a document for consultation to parties concerned in the context of a preparation of a possible legislative proposal on the simplification of VAT collection procedures in relation to centralized customs clearance. Bearing in mind the growing demand of companies to organize EU customs clearance cross-border, this is an important consultation. The current VAT rules do not provide clear and efficient solutions for centralized customs clearance. To facilitate the developments in the customs arena, it is crucial that the European Commission and the EU Member States implement a solution soon.

What is the problem? The Modernized Customs Code allows the customs authorities to authorize importers to declare and pay customs duties to the customs office that is competent for such importer, independent from where the goods are physically imported and where they are transported to within the EU. Read more here.