The joys of detailed work: small amount in dispute, big commitment
Sometimes it’s the little things that fascinate and challenge us lawyers the most in our day-to-day work. One such case was recently heard by the Cologne District Court. At first glance, the proceedings seem ridiculous, as the amount in dispute was only 47.50 euros. But as is so often the case in life, and especially in law, this inconspicuous amount turned out to be the trigger for a far-reaching legal dispute. This case is an excellent example of how a seemingly small financial issue can turn into a wide-ranging and meaningful legal debate.
At the center of this legal dispute was a client, a GmbH & Co KG, which had purchased three power supply units for its company in Austria. The seller from Austria carried out a qualified search, which revealed a different address to the client’s current one. Due to this circumstance, he demanded EUR 47.50 VAT, as the client allegedly could not invoke the reverse charge procedure. When the client informed him that the company’s registered office had recently changed and that the Federal Central Tax Office (BZSt) had not yet been updated, and she even submitted an extract from the commercial register, the seller remained adamant. He said it was not the address in the commercial register that counted, but the wrong address at the BZSt. If the client wanted an invoice to the Cologne address (where the registered office was now) then with VAT, despite intra-Community delivery.
The seller sued for the 47.50 euros, claiming that this was required by EU law. What followed was a dispute in which the opposing lawyer came up with all kinds of far-fetched ideas and misunderstandings about VAT law. He even went so far as to seek a ruling from the European Court of Justice. In the end, however, the court had to explain to him that entrepreneurial status in VAT law is a fact and does not depend on the data held by the BZSt being up to date. However, the process was challenging and had many exciting aspects, from responsibilities in Europe to different VAT laws in several member states.
A client with a bite
At first glance, you might think that this is a trivial matter. But far from it! What initially looked like a minor case grew into a significant legal discussion. It was about key aspects of VAT law, even though much of it had actually been clarified. In this case, the low amount in dispute was by no means an indicator of its scope. It became clear that we as lawyers can provide decisive legal clarification even in seemingly minor cases, which has significance far beyond the individual case.
This case illustrates that in the legal world, the smaller cases can often provide the greatest insights and twists. It shows how crucial it is to take every matter seriously and to passionately stand up for the rights and interests of my clients – no matter how small the amount in dispute may be. In this case, we were dealing with a small amount in dispute, but it had a major impact on the clarification of fundamental issues in VAT law and thus exemplifies the exciting and dynamic nature of our work in IT law.
Most of them might have simply “paid” because the case cost me 1-2 euros an hour, for example, and other lawyers would probably not have dealt with it at all.
Conclusion
This case at Cologne Local Court perfectly illustrates how, in the world of IT law and VAT law, even the small print can lead to big and significant stories. My client’s persistence and tenacity were not only the driving forces behind this case, but also a shining example of the commitment we bring to each of our cases, big or small. A modest amount in dispute perhaps, but a triumphant victory for the principle and a confirmation of our passion for the details and intricacies of IT law. The judgment in full is available here.
My respect to the judge at Cologne District Court who, despite the enormously high amount in dispute (!!!), took so much trouble with the judgment.
