Tax cases - 26 Sep

Beyond the tax

The claimant sold goods from a shop on a cruise ship. The ship's voyages began and ended in Germany visiting non-EU countries in between. Passengers booked the whole voyage but could leave the ship for shopping or sightseeing stops. The German tax authorities assessed the claimant to VAT on the goods sold on the basis that the place of supply of the goods was the point of departure of the passengers. The claimant appealed saying that as stops were made in other non-EU countries Article 8(1)(c) of the Sixth Directive did not apply and the sales were not taxable in Germany.
The European Court of Justice said that Article 8(1)(c) provided a simplified scheme of tax for supplies of goods during intra Community journeys by ship plane or train. The aim was to avoid conflicts of jurisdiction. The exclusion of stops in third...