{"id":3297,"date":"2018-04-24T00:00:00","date_gmt":"2018-04-24T00:00:00","guid":{"rendered":"https:\/\/new.leinonen.eu\/ltu\/risks-to-the-customer-in-international-trade\/"},"modified":"2018-04-24T00:00:00","modified_gmt":"2018-04-24T00:00:00","slug":"risks-to-the-customer-in-international-trade","status":"publish","type":"post","link":"https:\/\/leinonen.eu\/ltu\/news\/risks-to-the-customer-in-international-trade\/","title":{"rendered":"Risks to the customer in international trade"},"content":{"rendered":"
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The chain transaction is considered a group of transactions, when not only the supplier and the customer participate, but also one or few intermediaries (i.e. the intermediary\/intermediaries purchase the goods from the supplier and resell them to the final customer) participate and all transactions are related by a single delivery, i.e. the goods are transported directly from the supplier to the final customer.<\/p>\n

21 February 2018 the European Union Court of Justice (EUCJ) ruled in case C-628\/16 Kreuzmayr GmbH, which approved provisions that the customer does not have the right to deduct input VAT according to the incorrectly issued VAT invoices.<\/u><\/p>\n

This decision demonstrates, that the companies purchasing goods should also evaluate the circumstances of the transaction and ascertain that the transaction is formalized in a correct way. If the business partner incorrectly applies local VAT, the company does not have right to deduct such input VAT.<\/p>\n

Additionally, we would like to note that the assessment of the reliability of business partners becomes more relevant to each company and may help to reduce the risk in international trade.<\/p>\n

The circumstances of the case<\/b><\/p>\n

The case analysed the situation with chain transactions, i.e.:<\/p>\n