Abuse of the Right to Determine Place of Supply

• Recent judgment concerning abuse of law in determining the place of supply for VAT purposes
• Case involved a Czech company refurbishing a Jaguar vehicle owned by an individual, which was then sold to an Austrian company
• Czech company charged for renovation without VAT and then sold the car back to the Czech Republic
• Tax administrator described this as an artificially constructed chain of resales
• Czech company argued it had no knowledge of the fraudulent conduct and would not have received any tax advantage
• Supreme Administrative Court ruled that abuse of law does not have to be aimed at benefiting the person involved, but can benefit other entities.

Source: pkfapogeo.cz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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