X (Taxation) [2010] EUECJ C-539/08 (22 April 2010)

X (Taxation) [2010] EUECJ C-539/08 (22 April 2010)

A taxable person in the situation described in the first subparagraph of Article 28b(A)(2) of the Sixth Directive, where the intra-Community acquisition is deemed to occur in the Member State issuing the VAT identification number but the goods do not actually enter that Member State, does not have the right immediately to deduct the input VAT charged on that acquisition under Article 17(2) and (3) of the Sixth Directive.

Citation
[2010] EUECJ C-539/08
Parties
Appellant/respondent: Staatssecretaris van Financiën; Respondent/appellant: X; Respondent/appellant: Facet BV/Facet Trading BV
Jurisdiction
European Union
Judgment Date
22 April 2010
Procedural Posture
Preliminary Ruling (joined Cases C 536/08 and C 539/08) / Reference for Preliminary Ruling From Hoge Raad Der Nederlanden (supreme Court of the Netherlands)
Outcome
Reference answered; no immediate right to deduct input VAT in the circumstances described.
Legal Topics
Value Added Tax (vat), Intra Community Acquisitions, Right to Deduct Input VAT, Double Taxation, Transitional VAT Arrangements
European Union Law Tax Law Value Added Tax (vat) Intra Community Acquisitions Right to Deduct Input VAT Double Taxation Transitional VAT Arrangements

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Parties

Staatssecretaris van Financiën

Appellant/respondent

X

Respondent/appellant

Facet BV/Facet Trading BV

Respondent/appellant

Procedural Posture

Preliminary Ruling (joined Cases C 536/08 and C 539/08) / Reference for Preliminary Ruling From Hoge Raad Der Nederlanden (supreme Court of the Netherlands)

Legal Issues

  1. 1 Whether a taxable person, in the situation described 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, where the intra-Community acquisition is deemed to occur in the Member State issuing the VAT identification number but the goods do not actually enter that Member State, does not have the right immediately to deduct the input VAT charged on that acquisition under Article 17(2) and (3) of the Sixth Directive.

Court Disposition

Reference answered; no immediate right to deduct 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...