Tax Updates

ECJ: limitation period

May 18, 2018

On 26/04/2018, the ECJ ruled on a VAT reference C-81/17* re limitation period.

The Court found that the EU precludes national rules which, by way of derogation from the five-year limitation period imposed by national law for the correction of VAT returns, prevents, in circumstances such as those in the main proceedings, a taxable person from making such a correction in order to claim his right of deduction on the sole ground that that correction relates to a period that has already been the subject of a tax inspection.

 

*All ECJ rulings should be read in the concrete context.

ECJ: wrongly accrued VAT

April 13, 2018

On 11/04/2018, the ECJ decided on reference C-532/16* re wrongly charged VAT.

According to the Court:

  • the obligation to adjust undue VAT deductions set down in that article also applies to cases where the initial deduction could not be made lawfully because the transaction giving rise to that deduction was exempt from VAT. By contrast, the mechanism for the adjustment of undue VAT deductions provided for in those articles is not applicable in such cases, where the initial VAT deduction was unjustified as it concerned a VAT-exempt transaction relating to the supply of land
  • where the initial deduction of VAT could not be made lawfully, it is for the Member States to determine the date on which the obligation to adjust the undue VAT deduction arises and the time period for which that adjustment must be made, in accordance with the principles of EU law, in particular the principles of legal certainty and legitimate expectations.

 

*All ECJ rulings should be read in the concrete context.

ECJ: VAT adjustment

April 4, 2018

On 28/02/2018, the ECJ ruled on VAT reference C-672/16* re VAT adjustment.

The Court stated that EU VAT rules preclude national legislation which provides for the adjustment of the VAT initially deducted on the ground that a property, for which the right to opt for taxation was exercised, is regarded as no longer being used by the taxable person for the purposes of its own taxed transactions, where that property has remained unoccupied for more than two years, even though it is established that the taxable person has sought to rent it during that period.

 

*All rulings of the ECJ should be read in the concrete context.

ECJ: VAT credit

April 4, 2018

On 07/03/2018, the ECJ ruled on VAT reference C-159/17* re VAT credit.

The Court found that the EU VAT rules do not preclude national legislation which allows tax authorities to refuse a taxable person the right to deduct VAT when it is established that, on account of the alleged infringements committed by that person, the tax authorities could not have access to the information necessary to establish that the substantive requirements giving rise to the right to deduct input VAT paid by that taxable person have been satisfied or that that person acted fraudulently in order to enjoy that right.

 

*All ECJ rulings should be read in the concrete context.

ECJ: VAT credit

March 8, 2018

On 28/02/2018, the ECJ ruled on a VAT reference C-672/16* re right to VAT credit.

Tccording to the Court EU VAT rules preclude national legislation which provides for the adjustment of the VAT initially deducted on the ground that a property, for which the right to opt for taxation was exercised, is regarded as no longer being used by the taxable person for the purposes of its own taxed transactions, where that property has remained unoccupied for more than two years, even though it is established that the taxable person has sought to rent it during that period.

 

*All ECJ rulings should be read in the concrete context.

ECJ: credit note

February 23, 2018

On 22/02/2018, the ECJ ruled on VAT reference C-396/16* re non-payment.

The Court ruled that:

  • the reduction of a debtor’s obligations resulting from the final approval of an arrangement with creditors constitutes a change in the factors used to determine the amount to be deducted;
  • the reduction of a debtor’s obligations resulting from the final approval of an arrangement with creditors does not constitute a case of a transaction remaining totally or partially unpaid that does not give rise to an adjustment of the initial deduction, where

ECJ: ICS

February 23, 2018

On 21/02/2018, the ECJ ruled on VAT reference C-628/16* re ICS.

The Court ruled that:

  • where it is clear that the final recipient was the owner of the goods before the intra-Community transport took place, the ICS regime applies to the second of two successive supplies of the same goods which gave rise to only one intra-Community transport;
  • where the second supply in a chain of two successive supplies involving a single intra-Community transport is an intra-Community supply, the principle of the protection of legitimate expectations must be interpreted as meaning that the person ultimately acquiring the goods, who wrongly claimed a right to deduct input VAT, may not deduct, as input value added tax, the VAT paid to the supplier solely on the basis of the invoices provided by the intermediary operator which incorrectly classified its supply.

 

*All ECJ rulings should be read in the concrete context.

ECJ: VAT credit

December 7, 2017

On 15/11/2017, the ECJ ruled on reference C-507/16* re VAT credit.

The Court states that the EU VAT  rules precludes Member State legislation that prevents a taxable person, established in the territory of that Member State, deducting input VAT due or paid in that Member State in respect of services provided by taxable persons established in other Member States and used to provide services in Member States other than the Member State in which that taxable person is established, on the ground that that taxable person is identified for VAT purposes by virtue of one of the two cases referred to in Article 214(1)(d) and (e) of the VAT Directive. However, Article 168(a) and Article 169(a) do not preclude legislation of a Member State that prevents a taxable person, established in the territory of that Member State and eligible there for a tax deduction scheme, exercising its right to deduct input VAT due or paid in that Member State for services provided by taxable persons established in other Member States and used to provide services in Member States other than the Member State in which that taxable person is established.

 

*All ECJ rulings should be read in the concrete context.

ECJ: VAT upon dissolution

December 7, 2017

On 09/11/2017 the ECJ resolved on reference C-552/16*.

According to the Court EU VAT rules:

  • do not preclude national legislation pursuant to which the compulsory removal from the value added tax (VAT) register of a company whose dissolution has been ordered by court decision results in the obligation to calculate the input VAT due or paid on the available assets on the date of the dissolution of that company and to pay it to the State, on condition that that company no longer carries out economic transactions as from its dissolution.

ECJ: VAT refund

October 25, 2017

On 19/10/2017, the ECJ ruled on VAT reference C-101/16* re VAT refund.

According to the Court the VAT Directive precludes national rules, such as those at issue in the main proceedings, under which the right to deduct value added tax is refused to a taxable person on the ground that the trader which supplied a service to that taxable person and issued a corresponding invoice, on which the expenditure and the VAT are indicated separately, has been declared inactive by the tax authorities of a Member State, that declaration of inactivity being public and accessible on the internet to any taxable person in that State, in the case where that refusal of the right to deduct is systematic and final, making it impossible to adduce evidence that there was no tax evasion or loss of tax revenue.

 

*All ECJ rulings should be read in the concrete context.