The amendments to the Place of Supply of Goods Order bring into force EU wide rules on the VAT treatment of chain transactions where the goods are transported across an EU border.
The changes set out how the supply, that is to be treated as the cross-border supply, is to be identified. This includes identifying the place of supply of the goods before and after that cross-border supply.
The amendment to Regulation 134 clarifies the conditions necessary to be met before a supply across an EU border can be zero-rated.
In addition to these changes to the UK law there are some EU regulations that have direct effect. These set out the evidence that must be held to show the goods have been moved across an EU border. The linked guidance sets out HMRC’s view on the practical application of these regulations.