Directive 2006/112/EC (“VAT Directive”) set out a number of conditions for the exemption of supplies of goods from VAT in the context of certain intra-Community transactions.

One of those conditions is that the goods have to be dispatched or transported from one Member State to another.

However, the divergent approach amongst Member States in the application of those exemptions for cross-border transactions has created difficulties and legal uncertainty for businesses. This was contrary to the objective of enhancing intra-Community trade and to the abolition of the fiscal borders.

It was therefore important to specify and harmonise the conditions under which the exemptions can apply.

In order to provide a practical solution for businesses and also to provide assurance for Tax Administrations, the European Union opted by implement Council Directive (EU) 2018/1910 of 4 December 2018 and Council Implementing Regulation (EU) 2018/1912.

These legislations, commonly known as “Quick Fixes” establish uniform rules and conditions for, amongst others, the application of VAT exemption relating to intra-Community supplies that should now, be the same in each Member-State.

This is not a BCA policy, but rather European Union Law.

The legal acts which introduced the VAT changes applicable to the BCA auctions are:

a) Council Directive (EU) 2018/1910 of 4 December 2018 amending Directive 2006/112/EC as regards the harmonisation and simplification of certain rules in the value added tax system for the taxation of trade between Member States;

b) Council Implementing Regulation (EU) 2018/1912 of 4 December 2018 amending Implementing Regulation (EU) No 282/2011, namely article 45-A et. seq.

For a comprehensive reading, please also consider Explanatory Notes on the EU VAT changes in respect of call-off stock arrangements, chain transactions and the exemption for intra-Community supplies of goods (“2020 Quick Fixes”), namely §4 and §5.

First of all, even before send you the vehicle, BCA will always confirm that your EU VAT number is valid in VIES (or in the case of Germany, in the required German website).

Afterwards, if the transport is arranged by BCA, we will only need you to send us a legible copy/photo of the CMR, completed, signed and stamped and we will send you the vehicle documents.

If the transport is arranged by you, then we will need you to provide us:

1) Legible copy/photo of the CMR, completed, signed and stamped,

2) Transport insurance issued by the carrier’s insurance company, which complies with the EU road regulations. Ask your carrier, they should have it;

3) Confirmation of delivery – please fulfill the document that can be downloaded here and send us a copy signed and stamped by you.

After providing us the 3 documents described above, we will send you the vehicle documents.

In the cases in which BCA arranges the transport, you only need to provide us the CMR. Don’t worry, BCA will obtain the remaining documents directly from the transport company.

CMR is a consignment note with a standard set of transport and liability conditions that replaces individual businesses terms and conditions that evidences the transport of goods by road, according to the Convention on the Contract for the International Carriage of Goods by Road, a United Nations Convention that was signed in Geneva on 19 May 1956. All EU Member States have signed, accessed or ratified the Convention.

In order to complete it correctly you may find the following CMR filling instructions useful.

Insurance policy is a document issued by the carrier’s insurance company certifying that the carrier has protection against damages or losses during the transport.

Your carrier should have it, and as they are transporting your goods, it is normal to ask for it and they should provide this to you.

Confirmation of Delivery is, as provided by as per article 45-A (1) of Council Implementing Regulation (EU) 2018/1912 of 4 December 2018, a written statement from the Buyer, stating that the vehicles have been dispatched or transported by the Buyer, or by a third party on its behalf, and identifying the Member State of destination of the goods.

Don’t worry, you can find it here.

Just sign it when you receive the goods and send it to us with a copy of the CMR and copy of the carrier’s insurance policy.

It is possible to have an additional or different delivery address, as long as this address is either listed in your Chamber of Commerce or you can prove an agreement by showing us the rental contract. In such cases a document always needs to be returned back to BCA. 

>> Confirmation of alternative delivery address <<