Should the Italmoda Jurisprudence Apply to Carousel Fraud Involving Services? The ECJ's Pending Climate Corporation Emissions Trading Case

Journal
Author
Lamensch, M.C.S.
Country
European Union
Published Date
Issue
International VAT Monitor 2022 (Volume 33), No. 3
FormatPDF
EUR
45
| USD
50 (VAT excl.)

In the well-known Italmoda case,the ECJ decided that the exemption (zero rate) of the intra-Community supply should be denied when the supplier “knew or should have known” that, by his supply, he was participating in a transaction connected with fraudulent evasion of VAT. In the pending Climate Corporation Emissions Trading case, the question is raised whether a similar approach should apply to intra-Community supplies of services. In this article, the author suggests that this pending case highlights the urgent need for a comprehensive solution to the issue of carousel fraud in the European Union.