According to European Commission information notice a number of EU member states have agreed within the EU VAT Forum to take part in a test case in connection with private VAT rulings.

According to the agreement, taxable persons who are planning a cross-border transaction with one or more of the participating EU Member States may submit their request for private VAT ruling on treatment of the anticipated transactions to the participating Member State where they are registered for VAT purposes. If two or more companies are involved in the transaction, only one of them will have to submit the request for a ruling, acting on behalf of the remaining companies.

It must be accepted by the taxable person submitting a request for a cross-border ruling that the data can be shared with tax authorities of the Member States involved.

Following this test case procedure, the cross-border ruling can only be requested if the anticipated transactions are complex and have a so called “cross-border aspect”, which is defined by at least two or more Member States being involved in the respective transaction.

Each request will have to be introduced in line with the conditions governing national VAT rulings in the Member State where the request was submitted and it will have to be accompanied by translation into the official languages of the other Member States involved.

The concerned Member States will examine the request and come to a decision on the VAT treatment of the corresponding transactions as soon as possible.

 This procedure on private VAT rulings in relation to cross-border transactions has commenced from 1^st June 2013 and it is to continue until 31^st December 2013.