The German art dealer, who opted for margin taxation, also bought works of art from other member states VAT-free according to the main rule.
After that, he wanted to pay the VAT according to the rules of margin taxation. Since this was not made possible for him through a ruling answer, he paid the VAT according to the rules of intra-Community acquisition, but later he reduced the basis of margin taxation by the VAT thus paid.
The German tax authority objected to this as well, so in C-180/22. case the Court of Justice of the EU had to decide. Derived from the literal interpretation of the VAT directive, the Court held that the VAT of the Community procurement is not part of the purchase price, so the basis of the margin VAT cannot be reduced with VAT on IC-acquisitions.