ECJ: VAT inclusion in taxable amount for intra-community transactions clarified

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The European Union Official Gazette, on September 11, published the European Court of Justice (ECJ) Preliminary Ruling for Case No. C-180/22, which addresses the inclusion of VAT in the taxable amount for specific intra-community transactions. The case involved a German art dealer who had purchased artwork through exempt intra-community supplies and had requested the application of the VAT profit margin regime.


Previously, the ECJ had ruled that taxpayers should have the option to choose the VAT profit margin regime. However, it was also established that taxpayers cannot simultaneously opt for the profit margin regime and deduct input VAT unless this right to deduct is incorporated into national law.


In response to a subsequent preliminary ruling request, the ECJ clarified that the VAT paid by a taxpayer in connection with an intra-community acquisition of artwork, which is later supplied under the profit margin regime, should be considered as part of the taxable amount for that subsequent supply.


Source: Europa.eu

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