Summary
- BV X traded in electrical household appliances (white goods), sourcing part of its stock from German supplier A, and sought to apply the Dutch VAT margin scheme on the resale of those goods.
- The dispute centred on whether the margin scheme—which taxes only the dealer’s margin rather than the full sale price—could legitimately apply to appliances purchased in Germany, given the conditions attached to the invoices from supplier A.
- The outcome was that the margin scheme did not apply to these resales, meaning VAT was due on the normal basis rather than only on the margin. The case illustrates how strictly the conditions for the margin scheme are enforced, particularly for cross‑border purchases, and how invoice wording and the supplier’s own VAT treatment can be decisive. Dealers relying on the margin scheme should carefully verify that all statutory conditions are genuinely met.
Source:
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