VAT Application in Triangular Trade: Simplified Procedure and Burden of Proof Clarified

• SAC examined retroactive application of simplified procedure for triangular trade in VAT
• Dispute between company and tax authorities over VAT deduction
• Company claimed excessive VAT deduction, rejected due to incomplete transport of goods
• Company argued for three-party transaction classification, but did not meet necessary conditions
• Intermediary in triangular transaction liable to pay tax if invoice does not state triangular nature
• CJEU judgment in Facet: C-247/21 Luxury Trust Automobile highlighted conditions for derogating regime in triangular transactions
• Proper documentation of cross-border transactions within EU is crucial to avoid VAT evasion
• Incorrect reporting and incomplete documentary evidence can lead to issues with VAT deduction claims.

Source: pkfapogeo.cz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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