VAT treatment of chain transactions

In December 2019, the German government amended the tax law to further promote electromobility and implement Article 36a of the EU Council’s VAT system directive. This amendment clarifies the allocation of goods movement in sequential transactions in intra-community trade and aims to eliminate legal uncertainties resulting from the Federal Fiscal Court’s jurisprudence. The new provision specifies that the movement of goods is primarily attributed to the supply by the intermediary seller, except when the intermediary seller provides the VAT identification number to the supplier.

Source: bundesfinanzministerium.de

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