Germany MOF Releases Court Decision Explaining Differential Taxation of Intra-Community Supplies Under EU Laws

The German Ministry of Finance March 10 released Tax Court Decision No. XI R 2/20, explaining the differential taxation of intra-community supplies under EU laws. A taxpayer who owned several art galleries in Germany acquired artwork from artists based in other EU countries. The taxpayer applied a reduced tax rate under German law because the supplies were considered tax-exempt intra-community supplies in the respective artists’ countries. The taxpayer inquired as to the differential taxation of the supplies. The court explained that the taxpayer couldn’t opt for differential taxation because the supplies were considered tax-exempt intra-community supplies within the EU under ...