- The EU General Court held that a taxpayer using the VAT margin scheme cannot be denied that treatment solely because the supplier wrongly applied it, if the buyer received an invoice showing the margin scheme and acted in good faith.
- Tax authorities must prove that the buyer did not act in good faith or failed to take reasonable steps to ensure the transaction was not part of VAT fraud.
- The Court found that assessing the buyer’s good faith only in a separate tax-relief procedure, rather than when determining the VAT liability, can unduly restrict the taxpayer’s right to apply the margin scheme.
- The ruling is relevant not only for margin-scheme transactions in Poland, but also more broadly for reliance on supplier-provided VAT data, such as tax rate information under standard VAT rules.
Source: mddp.pl
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.
