VAT due on intra-Community car acquisition

• The Arnhem-Leeuwarden Court of Appeal has ruled that the fiscal neutrality principle does not prevent an additional sales tax assessment for the intra-Community acquisition of a car.
• This decision was made in response to an appeal by X, who had purchased a car in Germany that qualified as a new means of transport and sold it directly to their employer, Y bv.
• X argued that the additional tax assessment should be omitted on the basis of fiscal neutrality, but the court disagreed.
• The Supreme Court declared the appeal in cassation unfounded without further reasoning. X was unable to reclaim the German VAT due to the expiration of the period for doing so.

Source Taxlive

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