The seller failed to prove a zero-rated delivery to another EU member state because she lacked the buyer’s VAT identification number and the buyer picked up the car in person. A company purchased four cars from Germany on a hire-purchase basis and reported it as an intra-community acquisition in its VAT return. The tax inspector requested more information but did not receive it, leading to an additional VAT assessment and a fine. The court ruled that the company is a VAT entrepreneur but wrongly applied the zero rate for the car delivery without proper proof of shipment to another member state. The fine was annulled due to a previous similar fine.
Source Taxence
