R (Taxation) [2010] EUECJ C-285/09 (07 December 2010)

R (Taxation) [2010] EUECJ C-285/09 (07 December 2010)

Where a supplier conceals the identity of the true purchaser to enable VAT evasion in the destination Member State, the Member State of departure may refuse VAT exemption for the intra-Community supply under Article 28c(A)(a) of the Sixth Directive, in order to ensure correct application and prevent evasion, avoidance, or abuse.

Citation
[2010] EUECJ C-285/09
Parties
Defendant: Mr R; Trial Court: Landgericht Mannheim; Referring Court: Bundesgerichtshof; Parallel Tax Court: Finanzgericht Baden-Württemberg
Jurisdiction
European Union
Judgment Date
29 June 2010
Procedural Posture
Criminal Proceedings / Reference for Preliminary Ruling
Outcome
Reference for preliminary ruling answered; VAT exemption may be refused in circumstances of supplier participation in evasion.
Legal Topics
VAT Exemption, Intra Community Supply, Tax Evasion, Abuse of Law, Proportionality, Legal Certainty
Tax Law Criminal Law European Union Law VAT Exemption Intra Community Supply Tax Evasion Abuse of Law Proportionality +1 more

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Parties

Mr R

Defendant

Landgericht Mannheim

Trial Court

Bundesgerichtshof

Referring Court

Finanzgericht Baden-Württemberg

Parallel Tax Court

Procedural Posture

Criminal Proceedings / Reference for Preliminary Ruling

Legal Issues

  1. 1 Interpretation of Article 28c(A)(a) of Sixth Council Directive 77/388/EEC regarding VAT exemption for intra-Community supplies when supplier conceals purchaser identity to enable VAT evasion
  2. 2 Admissibility of preliminary reference
  3. 3 Scope of Member State powers to refuse VAT exemption

Ratio Decidendi

Where a supplier conceals the identity of the true purchaser to enable VAT evasion in the destination Member State, the Member State of departure may refuse VAT exemption for the intra-Community supply under Article 28c(A)(a) of the Sixth Directive, in order to ensure correct application and prevent evasion, avoidance, or abuse.

Court Disposition

Reference for preliminary ruling answered; VAT exemption may be refused in circumstances of supplier participation in evasion.

Orders

  • Member State of departure may refuse VAT exemption for intra-Community supply where supplier conceals purchaser identity to enable VAT evasion.
  • Costs are a matter for the national court; costs incurred in submitting observations to the Court are not recoverable.