ECJ Case: VAT exemption rules for intra-community transactions in Slovenia
The recent preliminary ruling in Case No. C-664/21, published in the European Union Official Gazette, provides important clarification regarding VAT exemption rules for intra-community transactions in Slovenia.
Background:
This case involves a situation where goods were stored in a Slovenian warehouse before being transported to another EU country. As a result of this cross-border movement, a VAT exemption was applicable in Slovenia. However, the Slovenian tax authority conducted an inspection and subsequently imposed additional VAT for these intra-community transactions.
Resolution:
The European Court of Justice (ECJ) has delivered its ruling, stating that the EU common system of VAT and the principles of neutrality, effectiveness, and proportionality do not prohibit national legislation that restricts the introduction of new evidence after the tax inspection stage in an administrative procedure. Nevertheless, for such measures to be permissible, they must meet two conditions: 1) they should not be less favorable than those applied to similar domestic situations, and 2) they should not practically hinder the exercise of rights granted by EU law.
Source: Europa.eu
