In Bawaria Motors sp zoo v Minister Finansow (Case C-160/11) the CJEU held that article 314 of Directive 2006/112/EC ‘must be interpreted as meaning that a taxable dealer is not eligible for the application of the margin scheme where it supplies motor vehicles considered to be second-hand goods within the meaning of article 311(1)(1) of that directive which it has previously acquired exempt from VAT from another taxable person which had only a right of partial deduction of input VAT paid on the purchase price of those vehicles’.
Why it matters: Chapter 4 (articles 311–343) of Directive 2006/112/EC provide special arrangements for second-hand goods works of art collectors’ items and antiques. Article 313 provides that where such goods are supplied by ‘taxable dealers’ Member States shall apply ‘a special scheme for taxing the profit margin’. Article 314 provides that this...
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