R (Taxation) French Text [2010] EUECJ C-285/09 (29 June 2010)

R (Taxation) French Text [2010] EUECJ C-285/09 (29 June 2010)

Article 28 quater, A, a) of the Sixth VAT Directive does not permit refusal of VAT exemption for intra-Community supplies where the supply has actually occurred, even if the supplier knew of or participated in VAT fraud or concealed the true purchaser's identity to enable fraud. The exemption is based on objective criteria, and refusal would violate the principles of neutrality and territoriality. Sanctions for fraud must be proportionate and not undermine the VAT system's structure.

Parties
Accused: M. R; Referring Court: Bundesgerichtshof (Federal Court of Justice, Germany); Trial Court: Landgericht Mannheim; Prosecutor: Generalbundesanwalt; Intervener: Commission of the European Communities; Intervener: Government of Germany; Intervener: Government of Greece; Intervener: Government of Ireland
Jurisdiction
European Union
Judgment Date
29 June 2010
Procedural Posture
Preliminary Ruling (ecj) / Opinion of Advocate General
Outcome
Preliminary ruling: VAT exemption cannot be refused in these circumstances under Article 28 quater, A, a) of the Sixth VAT Directive.
Legal Topics
VAT (value Added Tax), Sixth VAT Directive, Intra Community Supply, Tax Exemption, Fraud, Abuse of Rights, Principle of Neutrality, Principle of Territoriality, Proportionality, Penal Sanctions
European Union Law Tax Law Criminal Law VAT (value Added Tax) Sixth VAT Directive Intra Community Supply Tax Exemption Fraud +5 more

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Parties

M. R

Accused

Bundesgerichtshof (Federal Court of Justice, Germany)

Referring Court

Landgericht Mannheim

Trial Court

Generalbundesanwalt

Prosecutor

Commission of the European Communities

Intervener

Government of Germany

Intervener

Government of Greece

Intervener

Government of Ireland

Intervener

Procedural Posture

Preliminary Ruling (ecj) / Opinion of Advocate General

Legal Issues

  1. 1 Whether Article 28 quater, A, a) of the Sixth VAT Directive allows refusal of VAT exemption for intra-Community supplies where the supplier knew of or participated in VAT fraud or concealed the true purchaser's identity to enable fraud.

Ratio Decidendi

Article 28 quater, A, a) of the Sixth VAT Directive does not permit refusal of VAT exemption for intra-Community supplies where the supply has actually occurred, even if the supplier knew of or participated in VAT fraud or concealed the true purchaser's identity to enable fraud. The exemption is based on objective criteria, and refusal would violate the principles of neutrality and territoriality. Sanctions for fraud must be proportionate and not undermine the VAT system's structure.

Court Disposition

Preliminary ruling: VAT exemption cannot be refused in these circumstances under Article 28 quater, A, a) of the Sixth VAT Directive.

Orders

  • Article 28 quater, A, a) of the Sixth VAT Directive must be interpreted as not allowing refusal of VAT exemption for intra-Community supplies where the supply has actually occurred, even if the supplier knew of or participated in VAT fraud or concealed the true purchaser's identity to enable fraud.