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Tax & Financial Standards New Judgments of the ECJ For July 2019

27.08.2019

Tax & Financial Standards New Judgments of the ECJ For July 2019

С-242/18 of 3 July 2019

Taxable amount — Reduction —Financial leasing agreement, broken due non-payment of monthly installments — Revision — Supply of goods — Payment of compensation for the termination of the contract until its expiration — Jurisdiction.

Key aspects of the decision in the economic range:

Correction of the tax base for the period from the termination of the contract until the expiration of the term prescribed therein, since, on the one hand, it has not been established that before the end of the agreement term the leasing property was returned to the lessor, and on other hand, that the obligations of the lessee are finally implemented, considering the clause of the agreement, which provides for compensation to the lessor in the event of termination on account of non-fulfilment. Non-payment which may fall under the derogation from the obligation to reduce the taxable amount for value added tax.

Proceedings between UL and the Director of Direktsia ‘Obzhalvane i danachno-osiguritelna praktika’ — Sofia pri Tsentralno upravlenie na NAP concerning the refusal of the latter to allow adjustment of the amount of value added tax paid in connection with unpaid monthly installments under a financial leasing agreement.

С-316/18 of 3 July 2019

Value added tax — Deduction of input tax — Management costs of an endowment fund that makes investments with the aim of financing the whole of the taxable person’s output transactions — Overheads

Key aspects of the decision in the economic range:

Deduction of VAT, paid in respect of the costs associated with the investment of donations and endowments in a fund with the aim of generating resources intended to finance the whole range of activities of an educational establishment. A not-for-profit educational institution which, in addition to its principle activity of providing educational services, which are VAT exempt, also makes taxable supplies.

Proceedings concerning Commissioners forRevenue and Customs' refusal to allow a University to deduct value added tax relating to costs incurred in connection with investment activities falling outside of the scope of the VAT directive the income from which had been used to defray the cost of the whole range of the University’s activities.

С-26/18 of 10 July 2019

Import duties - Import VAT on goods - Incurrence of a customs debt for breaches of customs legislation - Requirement for the inclusion of goods in the economic turnover of the European Union - Transportation of goods in a Member State other than that in which the customs debt was incurred - Concept of 'import'

Key aspects of the decision in the economic range:

Customs duty. Simultaneous incurrence of an obligation to import VAT and a customs debt where, in relation to the taxable transaction, certain requirements laid down by customs legislation. Inclusion of goods placed on the Union's territory in the economic turnover of the Union solely on the ground that, in breach of customs legislation, the goods are not placed under any regime.

Concept of 'import'.

Proceedings concerning the obligation to pay value added tax in Germany after the incurrence of an import customs debt on account of infringements of customs legislation in the territory of that Member State.

С-273/18 of 10 July 2019

Right to deduct input VAT - Goods supply chain - Refusal of the right to deduct on account of that chain’s existence - Obligation on the competent tax authority to establish the existence of an abusive practice

Key aspects of the decision in the economic range:

Refusal to recognize the right to deduct input VAT. Existence of an abusive practice on the part of the taxable person or the other persons participating in that chain. Prohibition to deduct the tax paid upstream based on the sole conscious participation of the taxable person in the formalization of simulated transactions, but without identifying in what way the transactions in question have caused injury to the State Treasury.

Proceedings between SKz and the tax authorities (the VID) concerning the latter’s refusal to allow the right to deduct value added tax on acquisitions of goods made by that company from the company KF, on the ground that those acquisitions did not in fact take place.

С-649/17 of 10 July 2019

Consumer protection — Information requirements for distance and off premises contracts — Obligation, for a trader, to indicate its telephone number and its fax number ‘where they are available’

Key aspects of the decision in the economic range:

Information regarding the means of communication to enable the consumer to contact the trader quickly and communicate with him efficiently. Application of the transparency requirement according to which the trader must inform the consumer of the communication methods in a clear and comprehensible manner. Trader, which offers goods or services online and which has a telephone number available in a few clicks.

Proceedings concerning an application for an injunction relating to A practices for the display of information allowing consumers to contact that company.

С-722/17 of 10 July 2019

Jurisdiction in civil and commercial matters - Special jurisdiction - Distribution of proceeds from a judicially ordered auction - Production for public sale of real estate - A claim challenging the distribution of the proceeds of that sale - Concept of ‘matters relating to a contract’ - Actio pauliana

Key aspects of the decision in the economic range:

Jurisdiction and the recognition and enforcement of judgments in civil and commercial matters. A claim by which a creditor disputes the distribution of the proceeds of a public sale of immovable property in order to establish, on the one hand, that the competing claim is extinguished by offsetting and, secondly, that the formation of the collateral guaranteeing the execution of the last claim is invalid. Jurisdiction of the courts of the Member State in which the property is situated or of the courts for the place of enforcement.

Concept of ‘matters relating to a contract’. Actio pauliana.

Dispute concerning a claim challenging the distribution of the proceeds of a public sale of a real estate in Austria.

С-716/17 of 11 July 2019

Free movement of workers — Initiation of a debt remission proceedings — Residence requirement — Rule of jurisdiction laid down in the legislation of a Member State requiring the debtor to live or reside in that Member State to apply a measure of debt remission

Key aspects of the decision in the economic range:

Restrictions on the free movement of workers. National legislation, under which for a debt remission must be fulfilled residence requirement in the Member State concerned. A residence requirement, laid down in a national rule of jurisdiction. Direct effect in the relationship between private individuals, so that the private creditors must suffer a reduction or total loss of their debts owed to a debtor abroad.

Proceedings, instituted at the request of A for debt remission.

С-388/18 of 29 July 2019

Value added tax — Special sheme for taxable dealers — Taxable dealer, to whom the profit margin tax sheme is applicable — Annual turnover, in view of which is determined the applicability of the special scheme for small enterprises — Profit margin or amounts received

Key aspects of the decision in the economic range:

Tax issues. An administrative practice by virtue of which the turnover as a criterion for the application of the special scheme for small enterprises to a taxable person, which is subject to the special regime for taxation of the profit margin provided for taxable dealers, shall be calculated taking into account only the profit margin.

Proceedings between the Tax Office A and the company B, operating as a used cars dealer, concerning the method of calculating the latter's annual turnover for the purpose of applying the special scheme for small enterprises provided for in Directive 2006/112/EC.

June

С-407/18 of 26 June 2019

Unfair terms in consumer contracts - Production enforcement of secured mortgage decision - Notarial deed which is directly enforceable - Judicial control over unfair terms - Suspension of enforcement of a tax claim - Lack of jurisdiction of the court seized of the application for enforcement

Key aspects of the decision in the economic range:

Protection of consumers. National legislation under which a national court seized of an application for enforcement of a secured credit agreement concluded between a seller or supplier and a consumer in the form of subject of direct implementation deed, is incapable, at the consumer's request or on its own initiative, to ascertain whether the terms contained in that act are unfair.

Dispute over the forced execution of a receivable under a mortgage loan contract concluded in the form of a directly enforceable notarial deed.

С-518/18 of 27 June 2019

Judicial cooperation in civil matters - European Enforcement Order for uncontested claims - Certification of a judicial decision as a European Enforcement Order - Minimum standards applicable to uncontested claims procedures - Defendant without a known address who did not appear at the hearing

Key aspects of the decision in the economic range:

Requirements for certification as a European Enforcement Order.

Where a court is unable to obtain the defendant’s address, Regulation No 805/2004 does not allow a judicial decision relating to a debt, made following a hearing attended by neither the defendant nor the guardian ad litem appointed for the purpose of the proceedings, to be certified as a European Enforcement Order.

Proceedings between R and S, a natural person whose address is unknown, concerning a rental debt.

С-597/17 of 27 June 2019

Cases of VAT Exemptions — Medical and paramedical professions — Chiropractic and osteopathy — Medicinal products and medical devices — Reduced rate — Providing in interventions or procedures for therapeutic purposes — Standard rate — Providing in interventions or procedures for aesthetic purposes — Principle of fiscal neutrality — Keep the action of national legislation incompatible with European Union law

Key aspects of the decision in the economic range:

Exemption from VAT only for persons exercising a regulated medical or paramedical profession. National legislation which introduces different treatment between medicinal products and medical devices provided in interventions or treatments with therapeutic and medicinal products and medical devices provided in interventions or procedures only for aesthetic purposes, preventing the latter to benefit from reduced rate of VAT. Application of national rules incompatible with a Directive.

Proceedings concerning an application for annulment of the Belgian legal rules governing the the terms and conditions for value added tax (VAT) of the supplies of medical services as well as medical products and medical devices.

 


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