Advantages of eCMR for intra-community VAT exemption

25 Jun 2024
eCMR en el proceso de exención del IVA intracomunitario_FIELDEAS

Intra-Community VAT exemption is essential for transport in Europe. However, bureaucratic complexity can sometimes complicate the procedure and even invalidate it. With the advancement of digitalization, eCMR in intra-EU VAT exemption has emerged as a key solution in simplifying this process.

Within the VAT exemption process for intra-community transport, the CMR is presented as a proof of transport, which is necessary when the tax authorities carry out an inspection.

Thus, as explained by the Tax Agency in the Practical Manual VAT 2022, in the transport of goods between member states there are two scenarios for VAT exemption: either the seller carries out the transport or the purchaser.

When the goods are transported by the seller, the seller must prove it with the possession of at least two of the elements of proof:

  • Signed CMR letter or document
  • Bill of lading
  • Air freight bill
  • Invoice from the carrier of the goods

In addition, there is a possibility that you may be in possession of one of the above documents and, in turn, one of the following items of evidence:

  • Insurance policy or bank documents proving insurance payment
  • Official documents issued by a public authority, certifying the arrival of the goods in the Member State of destination.
  • Receipt issued by a depositary in the Member State of destination

When the transport is carried out by the purchaser, it must be justified with the possession of at least two of these documents:

  • Signed CMR letter or document
  • Bill of lading
  • Air freight bill
  • Invoice from the carrier of the goods

In addition, you may have one of the above-mentioned documents and also the policy or bank documents; official documents: receipt issued by a depositary in the Member State of destination.

However, the haulers have explained that the Treasury was asking for other tests in addition to those required in paper format and in a short period of time, which resulted on multiple occasions in invalidation of tests or exceeding deadlines.

Therefore, as explained by the National Federation of Transport Associations of Spain (Fenadismer), the representatives of the Working Group for the Promotion of Electronic Transport Documents (DET) have worked to make viable and expedite the use of digital control documentation in the transport of goods, specifically in relation to the Tax Administration and the Customs and IIEE, once consolidated as “necessary and recommended” technology by the Ministry of Transport.

Benefits of eCMR for intra-community VAT exemption

The working group made a proof of concept that demonstrated that with intra-community trips managed via eCMR all parties involved (seller, owner of the goods, carrier and consignee) could, as stated by Fenadismer:

  • Access to the same and unique information of the carrier.
  • Share the quantity and nature of goods transported.
  • Leave the means of transport clearly identified.
  • Identify without any possibility of doubt the consignee of the goods, as well as his identity, location in the member state and exact date/time (substitute for the affidavit).
  • Direct access to all necessary attachments (delivery notes, quality certificates, route incidents, etc.).
  • Possibility of including informative text on the part of the sender to ensure that the parties are fully aware of the expected modus operandi.
  • Certainty that all parties have simultaneous and instantaneous access to the copy of the closing document.
  • All of this can be digitally in the hands of the AEAT-D.G. Customs just minutes after completion of the shipment.

In this way, the eCMR is already considered by the Treasury as a valid and safe proof, as opposed to the paper format, in the processes of intra-community VAT exemption, by speeding up times and being able to gather all the information that the General Directorate of Customs and Special Taxes needs.

Benefits of eCMR

In addition to the benefits analyzed in the posts “eCMR or electronic consignment note, why implement it?, “Main benefits of the digital consignment note for shippers”, and “Main benefits of the digital CMR for carriers”, we must add that of streamlining processes in the intra-community VAT exemption with the same equivalence as paper documents.

SeamLess eCMR of FIELDEAS Track and Trace on intra-community VAT exemption

The eCMR is one of the most outstanding modules of FIELDEAS Track and Trace, the most advanced, flexible and secure Supply Chain Visibility platform on the market.

The SeamLess eCMR from FIELDEAS Track and Trace is one of the few on the market that offers full legal and juridical guarantee, both nationally and internationally. In addition, it also complies with the requirements stipulated by the Tax Agency, which already accepts the eCMR as a more flexible and valid proof in intra-Community transport.

eCMR in the intra-community VAT exemption_FIELDEAS
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Barbara Rodriguez

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