Comments on ECJ C-180/22: Taxable amount under margin scheme – acquisition of art from another Member State – taxpayer loss

• The case concerns the second hand margin scheme for art and the taxable amount under Article 315 of the VAT Directive.
• The Court clarified that the taxable dealer’s profit margin is the difference between the selling price and the purchase price, which includes everything that constitutes consideration obtained from the supplier.
• The purchase price does not include the cost elements that the taxable dealer has not paid to the supplier, such as the acquisition VAT paid by the dealer.
• The Court cannot depart from the clear and precise wording of the VAT Directive, and therefore, the VAT paid by a taxable dealer for intra-Community acquisition of a work of art forms part of the taxable amount of that supply.

Source KPMG

See also

• Summary of ECJ C-180/22 (Mensing) – VAT paid on intra-EU acquisition is to be included in taxable amount under profit margin scheme
• C-180/22 (Mensing) – Judgment – VAT paid on intra-EU acquisition is to be included in taxable amount under profit margin scheme
• C-264/17 (Mensing) – Judgment – Margin scheme on works of art; right to deduct input VAT by taxable dealer

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