- Advocate General of the European Court of Justice issued an opinion on VAT treatment for tooling in intra-Community transactions.
- Case involved a Slovakian company buying parts from a Bulgarian vendor, with tooling ordered by a related German company.
- Slovakian company sought a refund of Bulgarian VAT on tooling, claiming it as deductible input VAT.
- Advocate General concluded tooling transfer is a taxable supply in Bulgaria, not part of an exempt intra-Community supply.
- Opinion stated Article 4 of Directive 2008/9 allows for VAT refund eligibility in these circumstances.
- Bulgarian tax authorities had rejected the refund, but the Advocate General’s opinion challenges this.
- Final judgment by the European Court of Justice is still pending.
Source: globalvatcompliance.com
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.
