Material conditions of intracommunity supplies exemption

The claimant, a Portuguese subsidiary of a Dutch company Euro Tyre BV, sells tyres to retailers established in Portugal and in Spain. It has declared intracommunity supplies to Spain. The Portuguese tax authorities rejected this exemption, arguing that, at the time of the supply, the buyer, established and VAT registered in Spain for local transactions, was neither registered on the VIES system nor locally registered to benefit from the specific regime applicable to intracommunity operations.

The CJEU considers that neither the VAT Directive nor its own case law mention, among the substantive conditions to benefit from the intracommunity supplies exemption, the obligation for the buyer to have an intracommunity VAT number, on the one hand, and that this VAT number must be recognized in the VIES system, on the other hand. Consisting only in formal requirements, these two conditions cannot jeopardize the seller’s right to deduct VAT if the exemption’s substantive conditions are met and if there is no sound evidence pointing to the existence of fraud.

Bertrand Jeannin

Bertrand Jeannin, Partner, supplies strategic and technical advice to French and foreign multinational groups in all aspects of their VAT and customs policies. He regularly assists his clients in the […]

William Stemmer

William Stemmer, Partner, has more than 20 years’ experience in Indirect Tax matters. William particularly specializes in the real estate sector. William carries out many training courses on VAT aspects […]

Nicolas Kazandjian

Barrister registered with the Hauts-de-Seine Bar, he started my career in the indirect tax service line of Deloitte Société d’Avocats in 1999. My current position is Director. My area of […]

Vanessa Irigoyen

With more than 16 years of experience, Vanessa has extensive expertise in the implementation of international efficiency business models for customs, export control and indirect tax purposes. Her functions notably […]

Anne Gerometta

Anne Gerometta is Indirect Tax Partner of Deloitte Société d’Avocats. She advises international groups on their indirect tax issues. Anne notably assists operators from the Financial Sector – bank, insurance […]

Delphine Nicault

Delphine Nicault is an Attorney-at-Law at the French Bar. She joined Deloitte in 2002 and assists her clients on day-to-day VAT issues. She developed an expertise in the VAT and […]