European Union Gazettes ECJ Preliminary Ruling on German VAT Profit Margin, Deduction Rules

The European Union Official Gazette Sept. 11 published the European Court of Justice (ECJ) Preliminary Ruling for Case No. C-180/22, on the inclusion of VAT in the taxable amount for certain intra-community transactions. A German art dealer purchased artwork through exempt intra-community supplies and sought the application of the VAT profit margin regime. The ECJ previously found the taxpayer must be allowed to opt for the VAT profit margin regime. The ECJ also held, at that time, that taxpayers can’t opt for the profit margin regime and, at the same time, deduct input VAT, unless the right to deduct is ...