- The MS KLJUČAROVCI case concerns the application of the simplified triangular VAT scheme in a four-party intra-EU supply chain, where VAT was not paid between parties B (Slovenia) and C (Denmark), causing a VAT gap.
- The Slovenian tax authorities argued the scheme could not apply due to the involvement of more than three parties and goods not being delivered directly to the formal third party.
- The Court ruled that the simplified triangular scheme can apply to four-party chains if the material conditions of Article 141 are met, regardless of the physical delivery path.
- The scheme cannot be used in cases of fraud or if the business knew or should have known about fraudulent activity.
- The ruling highlights a tension between legal flexibility and strict anti-abuse enforcement, making the scheme legally broad but practically vulnerable to misuse concerns.
Source: londenholland.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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