Requirements for the VAT treatment as a zero rated intra-community supply

In its decision of January 21, 2015 the BFH (German High Court of Finance) stated that the question whether or not a supply is considered as intra-community acquisition in the EU member state of destination and can therefore qualify as zero-rated intra-community supply has solely to be determined based on the EU VAT Directive and not on potentially deviating national rules. Therefore, even if local rules consider an acquisition as outside the scope of VAT, the supplier can still rely on the EU VAT Directive if according to this there should be an intra-community acquisition and zero-rate its supply. It should further not be harmful if the acquisition is VAT exempt in the country of destination.

In addition, the BFH confirms recording the recipient’s foreign VAT-Id should not constitute a mandatory condition for zero-rating an intra- community supply but that the VAT exemption could also be granted if the supplier is able to prove that he is not able to receive the recipient’s VAT-Id No although he has used his best endeavors.
The case has been referred back to the local Finance Court in order to clarify some matters of fact in relation to the missing VAT Id No.