Intracommunity supplies and the burden of proof
Intracommunity supplies are exempt from VAT, but as a counterpart the burden of proof is rather demanding.
In its judgement of 22 November 2005, the Court of Appeal of Ghent confirmed that in order to prove an exempt intracommunity supply of goods, the supplier needs to have all the documents relating to the dispatch or transportation at his disposal. Even if the supplier does act in good faith, the documents remain essential.
This rather formalistic point of view is also in conformity with the Sixth Directive. After all, it is a European obligation for each Member State to prevent tax fraude and abuse with all means necessary, on condition that these means are proportional and effective.
