Comments on ECJ C-83/23: Reemtsma Claim Rejected – Implications for Cross-Border VAT Transactions

• Businesses with cross-border operations often face challenges in determining which country’s VAT applies to transactions
• Misjudgements in VAT determination can lead to difficulties in correcting retrospectively
• The ECJ developed the Reemtsma claim to protect recipients from input VAT loss in cross-border transactions
• In the case of H GmbH, the ECJ imposed strict requirements for the applicability of the Reemtsma claim
• The ECJ ruled against the plaintiff in the case, rejecting the Reemtsma claim for reimbursement of incorrectly invoiced VAT
• The ECJ justified its decision by stating that the claim only applies to VAT received from the issuer of the invoice, not refunded by tax authorities
• Tax authorities are not required to consider the fact that VAT refunded to an insolvency administrator may not ultimately be reimbursed to the recipient

Source: kmlz.de

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See also

• C-83/23 (H GmbH) – Judgment – No Refund of VAT wrongly charged to the buyer in case supplier initiated insolvency proceedings

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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.