For the application of the 0% rate for intra-community transactions there are two important conditions:
1. The goods are transported to another EU Member State;
2. The goods are delivered to a customer who is tax liable for VAT in that Member State and possesses a VAT ID number.
There are two recent rulings which have shed some more light on the second condition.
In brief, what the rulings state is that it is sufficient if the goods are delivered to a business in another Member State. The fact that it cannot determined which business it is is of no consequence.
This is particularly important in situations where an unsuspecting trader comes into a situation wherein others involved in the transaction have committed fraud. It could be that goods are delivered to one customer, while another was actually the receiver of the goods. Under case law following the recent judgements it is sufficient to confirm that one of the parties was the receiver of the goods, but all the customers must be businesses in any case.
Recently there was a case in which cars were delivered to customers in another Member State. The taxpayer was accused of delivering cars to customers other than that which was listed on the invoice. This case is decided by the Court of Breda and the verdict is not yet published.