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.

Michel Guichard

Michel Guichard, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]

Odile Courjon

Odile Courjon, Partner, has developed a strong expertise in indirect tax issues (VAT, wage taxes, excise taxes, export control and customs) in France and overseas. She advises her clients in […]

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. Major focuses of Bertrand’s input involve the […]

William Stemmer

William Stemmer, Partner, has more than 15 years’ experience in Indirect Tax matters. William particularly specializes in the real estate and financial sectors. William is a lecturer at the University […]

Nicolas Kazandjian

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

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, Managing Director, has been advising companies on indirect tax issues for more than 17 years. Anne is in charge of the FSI sector (Bank, Insurance, Asset Management) within TAJ […]

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 […]