One VAT Number, Double Trouble? EU Court Ruling on VAT Errors in Intra-EU Transactions

• The EU Court ruled that using the wrong VAT number in intra-EU transactions can trigger two separate tax obligations in the same country, leading to significant financial consequences.
• In the case, an Austrian company used its Austrian VAT number instead of registering in the destination country, resulting in both the supplier and buyer facing penalties.
• The supplier lost the right to apply the 0% VAT rate, while the buyer had to pay a “punitive” VAT without the right to deduct it.
• The Court confirmed these are two distinct mechanisms that can operate simultaneously, even if financially burdensome for the taxpayer.
• The ruling highlights that VAT neutrality is theoretically preserved through invoice corrections, but in practice, such corrections can be difficult or impossible, making the judgment relevant for all EU taxpayers, including those in Poland.

Source: crido.pl

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.

---

---