- The ECJ clarified that for a supply to be zero-rated as an intra-Community supply, the goods must physically move to another EU Member State.
- In the Brose Prievidza case, the tool remained in Bulgaria, so its supply could not be classified as an intra-Community supply.
- Each supply must generally be treated as a separate supply for VAT purposes, unless there is an artificial split or an ancillary supply.
- The ECJ found no artificial split or ancillary supply in this case; the tool had its own economic purpose and was a separate, VAT-taxable supply.
- The ECJ rejected the Bulgarian tax authorities’ view and confirmed that the tool sale was subject to Bulgarian VAT, allowing for a potential VAT refund.
Source: kmlz.de
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.
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