Comments on T-638/24: IC Acquisition also taxable in the event of wrongly charged VAT for exempt IC Supply

• The General Court ruled that Austria can impose VAT on Intra-Community Acquisition in the Member State where goods are dispatched or transported, as the purchaser used a VAT identification number from that Member State for the acquisition.
• In this case, D GmbH purchased goods in Austria, which were delivered to another Member State, and the invoices included VAT that would have been applicable if the transactions occurred solely in Austria, leading the Austrian tax authorities to declare these acquisitions taxable in Austria.
• The court highlighted that the obligation to pay VAT stems from the incorrect charging of VAT on invoices rather than a denial of exemption, and suppliers can rectify such invoices at any time, maintaining that the transactions could still be considered VAT-exempt under certain conditions outlined in the VAT Directive.

Source Taxlive

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GCEU Rules on VAT Liability for Intra-EU Trade and Incorrectly Charged VAT in Member States

• The GCEU ruled that EU law allows Member States to tax intra-Community acquisitions in the Member State of departure, even if VAT was incorrectly charged and the supply was VAT-exempt.
• The case involved an Austrian company that used its Austrian VAT number for cross-border acquisitions, leading to VAT being charged incorrectly.
• The company was denied the right to deduct the incorrectly charged VAT and was taxed in Austria because it did not prove the goods were taxed in the Member State of arrival.
• The judgment clarifies that both Article 41 (number acquisition) and Article 203 (VAT mentioned on invoice) of the VAT Directive can apply, refining previous case law.

Source: pwc.nl

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EGC T-638/24 (D GmbH) – Judgment – VAT on Intra-Community Acquisitions Not Precluded by Errors – VATupdate

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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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