- The establishment of the EU’s single internal market and the abolishment of customs borders necessitated new rules for the taxation of intra-Community transactions.
- VAT on intra-Community acquisitions of goods is not collected at the border but is taxed in the country of the purchaser, while the supplier applies a 0% VAT rate or exemption with the right to deduct input tax.
- Additional conditions must be met for a transaction to be considered an intra-Community acquisition of goods, such as the buyer being a VAT taxpayer and the purchased goods serving their business activity.
- Intra-Community acquisition of goods involves the movement of goods from one EU member state to another, with the purpose of purchase being for the buyer’s business activity.
- There are exclusions and specific criteria for transactions that are not considered intra-Community acquisitions of goods, as defined by the VAT Act.
Source MDDP
