- The General Court ruled that a reseller may not be denied the VAT margin scheme solely because its supplier incorrectly applied the scheme, if the reseller received an invoice stating that the scheme applied.
- A reseller’s right to use the margin scheme can be refused only if tax authorities prove the reseller did not act in good faith or failed to take reasonable steps to avoid participating in fraud.
- The Court held that assessing the reseller’s good faith in separate proceedings, rather than when determining the VAT due, can make the right to apply the margin scheme excessively difficult to exercise and may breach EU VAT rules.
- The decision is relevant for businesses using the VAT margin scheme in Poland and may also affect reliance on supplier-provided VAT information under the general VAT rules.
Source: mddp.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.
