Simplified triangular operation – wording “Reverse charge” mandatory

The CJEU ruled in the Luxury Trust Automobil case that in a triangular transaction, intermediary B must indicate “reverse charge” on its invoice to benefit from the simplification scheme under Articles 42 and 141 of the VAT Directive. Luxury Trust Automobil, an Austrian taxable person, acquired luxury vehicles from A in the UK for resale to C in the Czech Republic. B used the triangular simplification scheme but did not include “reverse charge” on its invoice, so the Austrian authorities claimed VAT from B.
The CJEU followed the position of the Austrian tax authorities and required the words “reverse charge” to be included on the invoice. The omission cannot be corrected later.
The Belgian VAT Authorities have also adopted this position. It is important to adapt invoice references accordingly and to check the correct application of the simplification scheme in each Member State.