- AG’s position: Advocate General Martín y Pérez de Nanclares concluded that Article 203 of the VAT Directive does not prevent the taxation of intra-Community acquisitions (ICV) even when VAT was incorrectly invoiced for exempt intra-Community supplies.
- Legal reasoning: The obligation to pay VAT under Article 203 arises from the issuance of an invoice stating VAT, regardless of whether the underlying transaction should have been exempt. This aims to protect tax revenue and prevent fraud.
- Practical implication: Businesses involved in cross-border transactions must ensure correct invoicing for exempt supplies, as incorrect VAT charges can still trigger liability for ICV taxation.
Source: Taxlive
See also
- General Court T-638/24 (D GmbH) – AG Opinion – VAT on Intra-Community Acquisitions Not Precluded by Errors – VATupdate
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice” (Art. 203) – VATupdate
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
- Podcasts & briefing documents: VAT concepts explained through ECJ/CJEU cases on Spotify
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