X sold a horse to a riding school in the United States in 2016, whereby X charged 0% VAT and treated the supply as an export. The dispute was whether this VAT treatment was correct.
Based on competition records, the horse participated in competitions in the EU, also after the horse was sold. The court found that the power to dispose of the horse as owner was transferred from X to the riding school before it was exported to the United States. The horse was thus not transported to the United States as part of the supply. The tax authorities have thus correctly reassessed the VAT.
Source Taxlive
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