Accounting, Payroll, Tax & Legal since 1989

Decisions of European Union Court of Justice

09 October 2014 ECJ Case C‑492/13 (Traum EOOD) – The ECJ spoke up that the tax administrator cannot preclude granting a VAT exemption in respect of the tax payer just on the grounds that the purchaser of the goods was not registered for VAT purposes and the tax payer has proven neither the authenticity of the purchaser’s signatures on the purchasing documents nor the authority to represent the purchaser unless the evidence exists that the supplier when supplying had not acted in good faith or negligently. It is applicable especially in those cases where the tax administrator has proven the sufficiency of the tax payers’ available documents for refund of input VAT. Such ECJ practice should be taken into account in the cases when the Lithuanian tax administrator argues the VAT rate application just on the basis of insufficiently qualitative documents possessed by a tax payer.

02 October 2014 ECJ Case C‑446/13 (Fonderie 2A) – The ECJ pointed out that in the cases where the goods are supplied to a purchaser in another EU Member State and before having them dispatched the finishing work is carried out on them in the purchaser’s country, such supply will be deemed to be carried out in the purchaser’s country. In other words, such supply for the vendor at first shall be regarded as the transfer of the goods for the purposes of business, and upon their completion as the domestic supply in the purchaser’s country. For that reason, the obligations to be registered for VAT purposes in the purchaser’s country may appear.


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