- Advocate General Kokott has concluded that a taxable supply occurred in Bulgaria regarding specialized equipment within the Brose supply chain involving SK-IME Bulgaria-Brose DE. The transfer of control over this special equipment is not considered a tax-exempt intra-Community supply. Brose DE, registered for VAT in both Germany and Bulgaria, commissioned IME Bulgaria to manufacture this equipment. Although the equipment remained with IME Bulgaria, Brose DE retained ownership and was invoiced for the costs. When Brose DE later sold the equipment to Brose SK, Brose SK sought a refund for the Bulgarian VAT paid, which the Bulgarian tax authorities denied. The Advocate General’s opinion clarifies that the supply of such equipment doesn’t qualify as a tax-exempt intra-Community delivery, and Article 4 of EC Directive 2008/9 doesn’t preclude the right to a VAT refund in this scenario.
Source: taxlive.nl
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.
