Comments on ECJ C-365/22 : Definitively scrapped cars that still contain functional parts and have remained in their economic cycle due to reuse of parts are considered used goods

• The company IT buys total loss vehicles from insurance companies and resells them as wrecks or for parts.
• The Belgian tax authorities have excluded invoices for cars sold for spare parts or end-of-life vehicles from the profit margin scheme.
• IT appealed, citing the Sjelle Autogenbrug judgment, arguing that such vehicles are used goods within the meaning of the VAT Directive.
• The ECJ ruled that definitively scrapped cars that still contain functional parts and have remained in their economic cycle due to reuse of parts are considered used goods under the VAT Directive.

Source BTW jurisprudentie

See also

• Summary of ECJ C-365/22: Definitively end-of-life motor vehicles acquired by an undertaking and intended to be sold “for parts” without removing any parts are considered second-hand good
• ECJ C-365/22 (Belgian State) – Judgment – Purchase of end-of life motor vehicles which are intended to be sold ‘for parts’ constitute second-hand goods

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