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VATupdate Newsletter Week 20 2025

DOMINOES

In 1988, a poodle fell from a balcony in Buenos Aires.

That sentence alone feels like the start of a light-hearted anecdote. But what followed was anything but.

The falling poodle landed on a woman, killing her instantly. A bystander rushed to help and was hit by a bus. A man witnessing the entire scene had a heart attack from the shock and died. Three lives lost—not by intent, design, or disaster, but by a dog with poor balance.

A tragic tale, but also a perfect metaphor for VAT.

Because in VAT, it’s rarely the obvious things that cause the most damage. It’s the little ones—the overlooked tax code, the misassigned supply, the checkbox left unticked. And nowhere is this more obvious than in chain transactions.

Chain transactions are supposed to be elegant. Goods move from A to C, but the paperwork flows A to B to C. It’s a fragile balancing act involving transport, VAT numbers, and the correct allocation of the intra-Community supply. But one tiny error—a mistimed transport, a wrongly attributed customer, a missing VAT ID—can collapse the whole thing.

Suddenly, your zero rate evaporates. Input VAT claims are denied. And the tax authority arrives, looking not for poodles, but penalties.

The worst part? You might never see it coming. Everything looks fine—until it falls on your head.

So this week, remember: in VAT, the smallest things can have the biggest impact. Check the details, confirm the flow, and keep an eye on every step—no matter how minor it seems.

Because in VAT, it’s not always the fraudsters or the complex schemes that cause the damage. Sometimes, it’s just a poodle and a bit of bad timing.

If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.


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