X (Taxation) [2010] EUECJ C-536/08 (22 April 2010)

X (Taxation) [2010] EUECJ C-536/08 (22 April 2010)

A taxable person in the situation described in the first subparagraph of Article 28b(A)(2) of the Sixth Directive does not have the right immediately to deduct input VAT charged on an intra-Community acquisition, as the goods did not enter the Member State which issued the VAT identification number and the deduction regime is not intended to apply to such notional acquisitions. Allowing deduction would undermine the corrective mechanism and the purpose of the transitional VAT arrangements.

Citation
[2010] EUECJ C-536/08
Parties
Appellant/respondent: Staatssecretaris van Financiën; Respondent/applicant: X; Respondent/applicant: Facet BV/Facet Trading BV
Jurisdiction
European Union
Judgment Date
22 April 2010
Procedural Posture
Preliminary Ruling (references for Interpretation) / Judgment of the Court of Justice of the European Union (third Chamber) on Reference From the Hoge Raad Der Nederlanden
Outcome
Reference answered; no right to immediate deduction of input VAT in the circumstances described.
Legal Topics
Value Added Tax (vat), Intra Community Acquisitions, Right of Deduction, Double Taxation, VAT Identification Number
European Union Law Tax Law Value Added Tax (vat) Intra Community Acquisitions Right of Deduction Double Taxation VAT Identification Number

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Parties

Staatssecretaris van Financiën

Appellant/respondent

X

Respondent/applicant

Facet BV/Facet Trading BV

Respondent/applicant

Procedural Posture

Preliminary Ruling (references for Interpretation) / Judgment of the Court of Justice of the European Union (third Chamber) on Reference From the Hoge Raad Der Nederlanden

Legal Issues

  1. 1 Whether a taxable person, in the situation referred to in Article 28b(A)(2) first subparagraph of the Sixth Directive, has the right immediately to deduct input VAT charged on an intra-Community acquisition.

Ratio Decidendi

A taxable person in the situation described in the first subparagraph of Article 28b(A)(2) of the Sixth Directive does not have the right immediately to deduct input VAT charged on an intra-Community acquisition, as the goods did not enter the Member State which issued the VAT identification number and the deduction regime is not intended to apply to such notional acquisitions. Allowing deduction would undermine the corrective mechanism and the purpose of the transitional VAT arrangements.

Court Disposition

Reference answered; no right to immediate deduction of input VAT in the circumstances described.

Orders

  • Articles 17(2) and (3) and 28b(A)(2) of Sixth Council Directive 77/388/EEC, as amended, must be interpreted as meaning that a taxable person coming within the situation referred to in the first subparagraph of Article 28b(A)(2) does not have the right immediately to deduct the input value added tax charged on an...