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The podcast is about art. 20-23 of the EU VAT Directive 2006/112/EC on the concept of ”Taxable transaction – Intra-Community Acquisition of Goods”.
This part of the EU VAT Directive addresses the intra-community acquisition of goods within the European Union. The Directive describe the conditions under which the purchase of goods in a different member state from where the goods were dispatched is considered an intra-community acquisition. In particular, it focusses on situations where goods are utilized by taxable persons for their business and on the use of goods by the armed forces of member states. The podcast also highlight the requirements for the refund of VAT in certain situations and emphasize the importance of classifying intra-community acquisitions to ensure that transactions that would be regarded as supplies of goods within the member state are correctly designated.
Articles in the EU VAT Directive
TITLE IV
TAXABLE TRANSACTIONS
CHAPTER 2: Intra-Community acquisition of goods
Article 20
‘Intra-Community acquisition of goods’ shall mean the acquisition of the right to dispose as owner of movable tangible property dispatched or transported to the person acquiring the goods, by or on behalf of the vendor or the person acquiring the goods, in a Member State other than that in which dispatch or transport of the goods began.
Where goods acquired by a non-taxable legal person are dispatched or transported from a third territory or a third country and imported by that non-taxable legal person into a Member State other than the Member State in which dispatch or transport of the goods ends, the goods shall be regarded as having been dispatched or transported from the Member State of importation. That Member State shall grant the importer designated or recognised under Article 201 as liable for payment of VAT a refund of the VAT paid in respect of the importation of the goods, provided that the importer establishes that VAT has been applied to his acquisition in the Member State in which dispatch or transport of the goods ends.
Article 21
The application by a taxable person, for the purposes of his business, of goods dispatched or transported by or on behalf of that taxable person from another Member State, within which the goods were produced, extracted, processed, purchased or acquired within the meaning of Article 2(1)(b), or into which they were imported by that taxable person for the purposes of his business, shall be treated as an intra-Community acquisition of goods for consideration.
Article 22
The application by the armed forces of a Member State taking part in a defence effort carried out for the implementation of a Union activity under the common security and defence policy, for their use or for the use of the civilian staff accompanying them, of goods which they have not purchased subject to the general rules governing taxation on the domestic market of a Member State shall be treated as an intra- Community acquisition of goods for consideration, where the importation of those goods would not be eligible for the exemption provided for in point (ga) of Article 143(1).
The application by the armed forces of a State party to the North Atlantic Treaty, for their use or for the use of the civilian staff accompanying them, of goods which they have not purchased subject to the general rules governing taxation on the domestic market of a Member State shall be treated as an intra-Community acquisition of goods for consideration, where the importation of those goods would not be eligible for the exemption provided for in Article 143(1)(h).
Article 23
Member States shall take the measures necessary to ensure that a transaction which would have been classed as a supply of goods if it had been carried out within their territory by a taxable person acting as such is classed as an intra-Community acquisition of goods.
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