Germany Fiscal Court Clarifies VAT Exemption Rules for Intra-Community Supplies

The German Federal Fiscal Court April 30 posted Decision No. V R 3/25, clarifying the VAT exemption rules for intra-Community supplies. The taxpayer, a tax consultant who sold a car to a Romanian company, didn’t receive confirmation that the car arrived in Romania before reporting the sale as exempt. The purchaser didn’t declare the car as an intra-Community acquisition, and it was never registered in Romania. The Tax Office denied the exemption for lack of documentary evidence. On appeal, the Federal Fiscal Court held that: 1) the taxpayer could invoke the VAT Act’s legitimate expectation protection for treating intra-Community supplies ...