The rubber meets the road for intra-EU transactions in the Euro Tyre Holding case
07 March 2011
Emmanuel Devin and Siegert Slagman discuss the ramifications of recent ECJ cases on the tax treatment of transactions in intra-EU supply chains.
When businesses operate in the EU, one of the main tax
challenges has always been to determine in which countries VAT
is applicable and in which countries they should obtain VAT
This situation becomes even more challenging when businesses
use so-called chain transactions where goods are shipped from
one EU member state to another EU member state with the
intervention of multiple buy and sell companies.
Recently, the European Court of Justice in Luxembourg (ECJ),
in a case called the
Euro Tyre Holding case (Case C-430/09), provided
more clarity on how to determine to which transaction in a
chain the intra EU-supply should be allocated. This case
addresses whether or not a supply of goods qualifies as a VAT
exempt or a zero rated intra-EU supply, and which supplies in
the chain are subject to VAT.
Article 31 of the directive 2006/112 (EU VAT directive)
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