In this article, the author comments on a Belgian case where the question was raised if there is VAT on the sale of illegal goods, the sale of counterfeit goods or the sale of stolen goods.
- The question of whether VAT applies to the sale of illegal, counterfeit, or stolen goods depends on their specific characteristics and whether they are part of the economic circuit.
- Narcotics and other goods that cannot be legally sold or traded are outside the scope of VAT.
- Counterfeit goods, on the other hand, are subject to VAT as they may compete with legal products in the market.
- When a customer’s item is lost or stolen during repair, compensation in the form of a higher-value object is considered a delivery of goods and is subject to VAT.
- The invoicing of illegally consumed electricity by a network operator to power thieves may also be subject to VAT.
Source Taxwin
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