ECJ - VIES not required on zero rating

28 February 2017

The European Court of Justice has ruled that an intra-community supply of goods (EC Sale) can be zero rated, even if the customers VAT number in the member state of arrival was not shown as valid on the VIES register.

The VIES register is an online database of EU VAT numbers on which companies can cross check the authenticity of a VAT number in order to make intra-community supplies.  Many EU countries do not automatically list VAT registered companies on this database.

The ruling made in the Euro Tyre BV case (C-21/16), stated that providing the formal conditions in the EU VAT Directive for the zero rating of the supply were met, then the supply can still be zero rated regardless of whether the VAT number of the company receiving the goods is showing as valid on the VIES database.

LATEST NEWS

Lithuania considers a standard VAT rate increase

Lithuania is currently considering whether to increase its standard VAT rate by 1% from 21% to 22%. This is being proposed to help meet additional military...

SEE MORE
VAT news
LATEST NEWS

Brazil to introduce indirect taxes on digital service...

From 2026, Brazil will introduce two new indirect taxes that will replace its old tax system. These two new taxes will work in a similar way to VAT and are...

SEE MORE
VAT news
LATEST NEWS

Ireland increases the VAT rate applied on...

The Irish government has confirmed that from 1 January 2026, the VAT rate will increase from 9% to the standard rate of 21% for: Accommodation...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.