In Sjelle Autogenbrug I/S v Skatteministeriet (Case C-471/15) (18 January 2017) the CJEU found that spare parts taken from end-of-life vehicles qualified as ‘second-hand goods’ for the purpose of the margin scheme.
The issue was whether the profit margin scheme (applicable to second-hand goods under the Principal VAT Directive article 311) applies to the sale of parts from end-of-life vehicles.
The CJEU found that the concept of ‘second-hand goods’ includes movable tangible property that is suitable for further use as it is or after repair and is derived from other property in which it was incorporated. The court added that in order to be characterised as ‘second-hand goods’ the only requirement is that the used property has maintained the functionalities it possessed when new. The court concluded that motor vehicle parts are therefore second-hand goods.
Finally the court accepted that there may be practical difficulties in...
