Comments on ECJ Case C-639/24: Limits on Denying VAT Exemption for Intra-Community Supplies

The ECJ ruled that VAT exemption for intra-Community supplies cannot be denied solely due to missing specific documentation listed in Article 45a of Regulation No. 282/2011.
Tax authorities must consider all available evidence to determine if goods were transported between EU Member States, not just the standard documentation.
Article 45a does not provide an exhaustive list of acceptable evidence for proving intra-Community supply.
Businesses can still qualify for VAT exemption with alternative evidence if standard documentation is incomplete.
Substantive conditions for VAT exemption take precedence over formal evidentiary requirements.

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ECJ Case judgement gives clarity on the documentation required to VAT exemption on an intra-Community dispatch

Clarification of Documentation Requirements: The European Court of Justice (ECJ) ruled that the requirements outlined in Article 45a of the VAT Implementing Regulation do not represent a mandatory or exhaustive list for proving the transport of goods for VAT exemption. The absence of the specified documents does not automatically justify the denial of VAT exemption if other credible evidence is provided.
Evidence Beyond Formal Requirements: The ECJ emphasized that tax authorities must consider all available evidence when assessing whether goods have been transported to another EU Member State. If the authorities are satisfied that the transport has occurred based on the totality of evidence, the VAT exemption under Article 138 of the VAT Directive must be granted, regardless of formal documentation shortcomings.
Implications for Businesses: This ruling provides important guidance for businesses engaged in intra-Community supplies, allowing them to use a broader range of evidence to demonstrate compliance with VAT exemption criteria. It highlights the need for comprehensive documentation practices, as tax authorities will evaluate cases on an individual basis, reducing the risk of legitimate VAT exemptions being denied due to strict adherence to formal documentation requirements.