Fallback Acquisition Taxation in Intra-Community Supplies: Developments, Risks, and Legal Perspectives

The article discusses the “fallback acquisition” (Auffangerwerb) in intra-community supplies, focusing on developments and risks. It addresses when a fallback acquisition is taxed under § 3d sentence 2 UStG/Art. 41 VAT Directive, especially in cases of failed intra-community supplies, and whether the recipient is entitled to input VAT deduction. The issue often arises during tax audits. The article highlights the importance of current and future ECJ case law in determining when fallback acquisition taxation applies. It also explains that tax exemption for intra-community supplies in the country of departure is linked to acquisition taxation in the destination country, making the declaration of intra-community acquisitions a routine VAT matter for taxpayers and advisors.

Source: datenbank.nwb.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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