VAT in Europe – News

amavat EU

European Court of Justice (ECJ) new ruling on VIES number requirement

Date15 Mar 2017

European VAT

Recently the ECJ presented a ruling that will make registering in the VIES database more flexible, in order to allow an intra-Community supply to be zero-rated.

In case Euro Tyre Bv (C-21/16), a Polish customer provided a VAT number that was valid in Poland and up to date in Poland, but was not registered in the VIES database. This intra-Community supply was allowed to be zero rated by the ECJ, even if a VIES number is not provided by the customer, due to no evidence of fraud or VAT avoidance, and all formalities where indeed met.

There are two main conditions for an intra-Community supply to be zero-rated (i) goods being shipped from one EU country to another EU country (ii) the customer provides a valid VAT number. The ECJ has frequently reviewed the interpretation of these conditions, the last was in favour of the taxpayer.

To find out more information please visit >