- Incorrectly invoiced VAT on intra-Community supplies can create multiple VAT liabilities: one from the invoice itself and another from the “safety net” mechanism if the wrong VAT number is used.
- The General Court confirmed that both liabilities can legally coexist, even if this results in what feels like double taxation in the same Member State.
- This outcome arises from two separate legal mechanisms: Article 203 VAT Directive (VAT liability from invoice) and Article 41 VAT Directive (safety net for intra-Community acquisitions).
- The case highlights the complexity and potential pitfalls in the intra-Community VAT system, especially regarding the use of VAT numbers and correct invoicing.
Source: vat-consult.be
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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