- The CJEU ruling in case C-639/24 clarifies that tax authorities must evaluate all evidence of cross-border transport for VAT exemption, rejecting overly formalistic interpretations that deny exemptions based solely on specific documentation requirements outlined in Article 45a of the EU VAT Implementing Regulation.
- The judgment emphasizes the primacy of substantive requirements, the principle of neutrality, and prohibits the artificial reclassification of intra-Community transactions due to formal documentation issues, reinforcing that the exemption under Article 138 of the VAT Directive should not be denied if alternative proof of transport exists.
- This decision is significant in promoting intra-Community trade, as it mandates that tax authorities acknowledge effective transport of goods and not impose excessive formalism that could distort economic activities, urging a coherent interpretation of the common VAT system.
Source International Tax Review
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