Netherlands A-G Conclusion: VAT 0% not applicable for sales of cars to Hungarian buyers, but delivered to Germany

• The Dutch Advocate-General gave its conclusion in a cause involving the application of the VAT zero-rate on intra-Community transactions.
• In the case, X (a Dutch VAT Group) sold cars to Hungarian buyers, which were sent and delivered to parties in Berlin, Germany.
• The Dutch tax authorities denied the zero rate on intra-community transactions, arguing that the invoices did not mention the correct recipient/customer.
• The Court decided that there was no gross negligence, but still agreed that the VAT zero-rate could not be applied.
• Both X and the tax authorities appealed to the Supreme Court, both focusing on the question if X’s rights for proper representation and assistance have been granted sufficiently.
• The Advocate General recommends dismissing X’s appeal and upholding the tax authorities’ appeal, referring the case to a different court.

Source: nlfiscaal.nl

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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