Comments on ECJ C-696/20: ECJ rules on applicability of VAT in chain transactions

The Court of Justice of the EU (CJEU) has recently clarified in its important decision in VAT case B (C-696/20)) the applicability of VAT in chain transactions.
This case shows that the tax authorities can have extremely rigid approach to the chain transactions and the taxpayers need to carefully consider VAT consequences of their cross-border (chain) transactions in the EU.
Good news is that the CJEU decided that if the intra-EU sale is not exempt from VAT because the seller did not meet all conditions, then the taxpayer should not face double taxation on this transaction.

Source Grant Thornton

See also ECJ C-696/20 (Dyrektor Izby Skarbowej w W.) – Judgment – A “double tax” can not be levied in the event of erroneous taxation of intra-Community acquisition of goods

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