- Margin Scheme Applicability: Advocate General Ettema asserts that a VAT taxable person can apply the margin scheme to goods involved in a one-off resale, contrary to tax authorities’ interpretations.
- Case Background: A fiscal unity (FE) bought a motor yacht under the margin scheme but refrained from reselling it due to hidden defects. Later, a director from the parent company purchased the yacht at a reduced price, prompting the FE to seek margin scheme application.
- Legal Interpretation: The Advocate General emphasizes a broad interpretation of the reseller concept within the margin scheme to prevent double taxation and competitive distortions, indicating that the nature of resale—whether regular or one-off—should not restrict the application of the scheme.
Source Taxence
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