ECJ (Judgment) VAT was payable on supplies of counterfeit drugs even though the income generated by the trade was unlawful. Fiscal neutrality prevented differentiation between lawful and unlawful supplies
The defendants had sold counterfeit perfumes and had had VAT charges imposed retrospectively. It was held proper to charge VAT on sales which were illegal. Fiscal neutrality was set aside only where the special characteristic of a product required it
Citations:
Times 10-Jun-1998, Gazette 09-Sep-1998, C-3/97, [1998] EUECJ C-3/97
Links:
Statutes:
Sixth Council Directive 77/388/EEC May 1977 2
VAT, European
Updated: 03 June 2022; Ref: scu.162023