Supreme Court: Where the purchaser’s identity is unknown, the reverse charge mechanism does not apply

The Supreme Court reviews the reverse charge mechanism for value-added tax (VAT). The appellant argues that the identity of the purchaser should be known for the reverse charge mechanism to be applicable, as it helps prevent VAT fraud and abuse. The Supreme Court considers relevant laws and EU directives related to the reverse charge mechanism. It concludes that the identification of the purchaser is necessary for the proper implementation of the mechanism. The Court also addresses principles such as legal certainty, proportionality, trust, and fiscal neutrality. It states that in cases where the purchaser’s identity is unknown, the reverse charge mechanism does not apply, and the supplier is liable for VAT. The Court confirms the decision of the lower court, stating that the appellant did not dispute the unknown identity of the purchaser. Therefore, the lower court’s ruling is upheld.

Source: uitspraken.rechtspraak.nl

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