Belgium updates circular to confirm “Reverse Charge” wording being necessary in simplified triangulation 16.06.2023

In its recent ruling in the case “Luxury Trust Automobil GmbH (C-247/21)”, the European Court of Justice (ECJ) determined that the explicit mention of the reverse charge on an invoice is essential for the application of simplified triangulation. Without it, it is not clear that the VAT liability should pass to the customer. A reference solely indicating “triangulation” would not be sufficient.Furthermore, the ECJ ruled that invoice adjustments may not be made retroactively, since in accordance with the principles of the EU VAT legislation, changes are only effective at the time they are made.

Source: meridianglobalservices.com

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