- The case involves a German art dealer who received artwork from other EU countries.
- The dealer requested the application of a margin scheme to the supplies, but the Tax Office denied the request.
- The Tax Office argued that the German Law on Turnover Tax prohibits the application of the margin scheme to goods acquired as part of intra-EU acquisitions if the supply was previously exempt in another EU country.
- The dealer argued that the Tax Office’s decision was based on national legislation that contradicts EU-wide rules.
- The Finance Court ruled in favor of the dealer, stating that the taxable amount must be determined according to EU law.
- The Tax Office appealed the ruling to the German Federal Finance Court (FFC).
- The FFC noted that under national legislation, turnover tax can be considered when determining the taxable amount for a margin scheme.
- The FFC was uncertain about the interpretation of EU VAT Directive provisions regarding the deduction of turnover tax from the selling price for intra-EU acquisitions.
Source: vatabout.com
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.
