ECJ Case: Advocate General issues opinion on VAT deductibility for tooling in intra-Community supply
The Advocate General of the European Court of Justice (ECJ) delivered an opinion in Case C-234/24 concerning the VAT treatment of tooling in the context of intra-Community transactions.
The case involved a Slovakian company that manufactured vehicle-related components. The company acquired parts—considered intra-Community supplies—from a Bulgarian vendor. A related German company had ordered specialized tooling for the production of these parts. The Slovakian taxpayer claimed a refund of the Bulgarian VAT charged on the tooling purchase, treating it as deductible input VAT.
Key elements of the Advocate General’s opinion:
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Taxable supply determination: The Advocate General concluded that the transfer of ownership of the tooling constituted a taxable supply in Bulgaria and should not be treated as part of an exempt intra-Community supply.
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Refund eligibility: The opinion clarified that Article 4 of Directive 2008/9 does not preclude the right to a VAT refund in such circumstances.
The Bulgarian tax authorities had previously rejected the refund claim, asserting that the tooling was part of an exempt intra-Community transaction. The Advocate General’s opinion challenges that position, though the final judgment by the ECJ remains pending.
Source: europa.eu
