VAT news update

Fictitious Intra-EU acquisition for chain transactions

  • The VwGH confirms the opinion of the tax authorities, according to which the first delivery in a chain transaction is the moving (cross-border) delivery if the middle entrepreneur picks up the goods under FCA delivery conditions from the first supplier in the country of departure and transports them to the end customer in the country of destination under DDP delivery conditions.
  • If the middle entrepreneur appears with the UID number of the country of departure, he causes a fictitious intra-EU acquisition without input tax deduction in this country . However, this does not apply if the first (cross-border) delivery was not treated as a tax-exempt delivery (reference to ECJ  22.4.2010,  Case C-536/08).
  • The VwGH did not comment on the question of whether the medium-sized entrepreneur is entitled to the input tax deduction from the invoice of the first supplier, which was invoiced with VAT.

Source Leitner & Leitner

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