- The sale of tooling is not considered ancillary to the sale of parts manufactured with that tooling for VAT purposes.
- Automotive businesses have correctly treated tooling and parts sales as separate transactions, and this has been clarified by a recent decision.
- Tax authorities can no longer challenge these transactions as artificially split for VAT purposes.
- Automotive businesses should review and clearly document their tooling sales contracts to avoid ambiguity and potential challenges.
- The case involved Brose group companies and clarified VAT treatment for intra-community supplies and tooling sales within the EU.
Source: essentiaglobalservices.com
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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