What is the difference between intra-community acquisition and intra-community supply?
January 23, 2024 | 40,00 EUR | answered by Felix Schönecker
Dear tax advisor,
my name is Ludwig Hering and I run a small business that trades goods within the EU. I recently heard about the terms "intra-community acquisition" and "intra-community supply", but I am a bit confused about the exact meaning and the difference between the two.
Currently, I import goods from another EU country and sell them to customers in my home country. This raises the question for me whether it is considered an intra-community acquisition or an intra-community supply.
My concern is that I may incorrectly calculate or declare the value added tax, which could lead to tax issues. Therefore, I would like to understand exactly what the difference between intra-community acquisition and intra-community supply is and how I can ensure that I comply with the correct tax regulations.
Could you please explain to me what criteria need to be met for it to be considered an intra-community acquisition or an intra-community supply? Are there any specific documents or forms that I need for this? And what steps do I need to take to ensure that I correctly pay the value added tax?
Thank you in advance for your help and support.
Sincerely,
Ludwig Hering
Dear Mr. Hering,
Thank you for your question regarding intra-community acquisition and intra-community supply in connection with the trade of goods within the EU. I understand that the distinction between these terms can be confusing, so I will try to explain them as clearly as possible for you.
An intra-community acquisition occurs when you, as a business owner, import goods from another EU country into your home country. This means that you acquire the goods to resell them in your own business or use them in another way. An intra-community acquisition is subject to VAT in the destination country, which is your home country.
On the other hand, an intra-community supply refers to when you, as a business owner, sell goods to another business in another EU country. The goods are physically transported from one EU country to another. An intra-community supply is exempt from VAT, provided certain conditions are met.
To ensure that you comply with the correct tax regulations and correctly pay the VAT, you should make sure to fill out and keep all necessary documents and forms properly. These include the confirmation of arrival, the VAT identification number of your business partners in other EU countries, and the Recapitulative Statement (RS), where you declare your intra-community supplies and acquisitions.
It is important that you accurately document all transactions and can provide evidence to avoid potential tax issues. If you are unsure, I strongly recommend that you consult with an experienced tax advisor who can assist you in correctly handling your intra-community transactions.
I hope this information helps you and makes you feel more confident in dealing with intra-community acquisitions and supplies in the future. If you have any further questions, please feel free to contact me.
Best regards,
Felix Schönecker
