In the case of cross-border B2C supplies, a seller's involvement in the transportation of goods determines whether VAT is due in the country of departure or the country of destination. Similar principles apply to excise duties. If the seller has arranged the transportation of excisable goods, he is liable for the excise duty incurred in the country of destination. But when is the seller deemed to be involved in the transportation? In its ruling of 19.12.2024, the ECJ decided that even a very minor involvement in the organization of the transport, even the “guidance” of the customer, is sufficient. Caution is therefore required in structuring this.

The tax authorities often question the input VAT deduction of holding companies. A recent ECJ judgment is now turning attention in a different direction. The case concerns the input VAT deduction of a group company from supplies of another group company. The arguments discussed by the ECJ in this context could also be put forward by the tax authorities in any other group against the input VAT deduction of subsidiaries.