Keywords
Summary

Keywords

Tax provisions – Harmonisation of laws – Turnover taxes – Common system of value added tax – Persons liable to pay the tax

(Council Directive 77/388, Art. 21(1)(b))

Summary

Article 21(1)(b) of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 2000/65, must be interpreted as meaning that, in order for him to be considered a taxable person who is not established within the territory of the country, it is sufficient that the taxable person should have established the seat of his economic activity outside that country.

In particular, in a situation which is characterised, on the one hand, by the fact that the seat of the economic activity of the taxable person is known and is located outside the country of the customer and, on the other, by the circumstance that it is not disputed that this is the actual, genuine seat and not a fictitious seat or presence, any personal residence which the taxable person may have within the country cannot be taken into account.

The presumption that the services are provided by a taxable person not established within the territory of the country when the seat of that person’s economic activity is located outside that country, wherever his personal residence may be, allows the customer established in a country, who is aware that the supplier has the seat of his economic activity outside that country, to avoid having to undertake research concerning the personal residence of that supplier and, therefore, contributes to ensuring accurate and reliable collection of VAT.

(see paras 28, 34-36, operative part)