European Union – Clarification of Losses for Sales Under Deposit Contracts

The European Commission’s VAT Committee acknowledges that small losses of property, which result from the very nature of the property, unforeseeable circumstances or an authorisation or instruction from the competent authorities, will not give rise to an Intra-Community supply as described in Article 17 of Directive 2006/112/EC.

Small losses are defined as losses of less than 5% in value or quantity of the total stock.

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