The Court of Justice of the European Union (CJUE) issued judgment (C-696/20) in a Polish case concerning chain transactions.
The dispute concerned the company (B) from the Netherland registered to VAT in Poland. B purchased the goods from the Polish company registered to Polish VAT (A). The purchased goods were sold to the entities from other EU countries. The goods were transported from the company A to the last entities from other EU countries. B company acted as the intermediary between the supplier (A) and the recipient (the last company in this chain). The transactions between A and B have been qualified as domestic sale and taxed with 23% VAT rate. The transaction between B and the entities from other EU countries have been defined as intracommunity transactions (for B- intracommunity delivery taxed with 0% VAT rate). The domestic transactions between A and B resulted in VAT refund for B company.
Source Intertax
