EMAG Handel: the final outcome

Article by Patrick Walker and Jo Bello. This article appeared in the June 2006 issue of Tax Adviser.
In the March 2006 issue of Tax Adviser the authors commented on the opinion that the Advocate General gave in EMAG Handel Eder OHG v Finanzlandesdirektion fur Kartnen Berufungssenat II. The EMAG case considers a question relating to a 'chain transaction', an increasingly common occurrence in intra-community trade, and explores which transactions in the chain can be effectively 'zero-rated' as an intra-community dispatch.

The ECJ has now handed down its judgment. This arrives at the same conclusion as the AG, but applies a slightly difference approach in getting there. This article summarises the ECJ's conclusions and also touches on some of the practical considerations and opportunities for business that may arise as a result of the decision.

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June 2006 by Patric Walker and Jo Bello