News

/ News
Tax & Financial Standards New Judgments of the ECJ For March 2020

30.03.2020

Tax & Financial Standards New Judgments of the ECJ For March 2020

Tax & Financial Standards New Judgments of the ECJ For March 2020

New judgments

С-75/18 of 03 March 2020

System of value added tax — Freedom of establishment — Tax on the turnover of telecommunications operators — Progressive tax having a greater impact on undertakings owned by natural or legal persons of other Member States than on national undertakings — Progressive tax bands applicable to all taxable persons — Neutrality of the amount of turnover as a criterion of differentiation

Key aspects of the decision in the economic range:

System of value added tax. Turnover-based tax for telecommunications undertakings. Character as a turnover tax. Disadvantage for foreign undertakings arising from tax rate with progressive effect. Indirect discrimination. Justification of tax with progressive effect based on turnover. Unlawful favouring of small undertakings through a progressive tax rate.

Proceedings concerning the payment of a tax on turnover in telecommunications sector.

С-125/18 of 03 March 2020

Consumer protection — Unfair terms in consumer contracts — Mortgage loan agreement — Variable interest rate — Reference index based on mortgage loans granted by savings banks — Index arising from a regulatory or administrative provision — Unilateral introduction of the term by the seller or supplier — Review of the transparency requirement by the national court — Consequences of a finding that the term is unfair

Key aspects of the decision in the economic range:

A contractual term in a mortgage loan agreement concluded between a consumer and a seller or supplier, which provides that the interest rate applicable to the loan is based on one of the official reference indices provided for by the national legislation. Transparency requirement of a contractual term, under a mortgage loan agreement, setting a variable interest rate, where the method for calculating that rate is regarded as complex for the average consumer. Information on the method used for calculating the index on the basis of which that interest rate is calculated as well as past fluctuations of that index and possible future fluctuations.

Proceedings concerning the contractual term governing the variable ordinary and remunerative interest rate in the mortgage loan agreement.

С-323/18 of 03 March 2020

Freedom of establishment — System of value added tax — Turnover tax in the store retail trade sector — Progressive tax having a greater impact on undertakings owned by natural or legal persons of other Member States than on national undertakings — Progressive tax bands applicable to all taxable persons

Key aspects of the decision in the economic range:

Turnover-based tax for retail undertakings. Disadvantage for foreign undertakings arising from tax rate with progressive effect. Indirect discrimination. Justification of tax with progressive effect based on turnover. Neutrality of the amount of turnover as a criterion of differentiation. Ability to pay of taxable persons. A tax regime, where the discriminatory effect can be inferred solely from its progressive rate, which taxes economically stronger persons more heavily.

Proceedings concerning payment of a turnover tax in the store retail trade sector.

С-482/18 of 03 March 2020

Freedom to provide services - Tax on advertising activities based on turnover - Obligations relating to registration with a tax authority - Principle of non-discrimination - Imposition of fines on the ground of a failure to comply with the obligation to register

Key aspects of the decision in the economic range:

Substantive tax law and law of tax procedure. Turnover-based tax on advertisements. Different registration procedures for nationals and foreigners. Penalties in the case of non-registration.

Proceedings between a company and the National Tax and Customs Authority concerning decisions by which that authority imposed a series of fines on that company for having infringed the obligation to submit a tax declaration of persons exercising an activity subject to the tax on advertisements laid down in Hungarian legislation.

С-655/18 of 04 March 2020

Customs union - Theft of goods placed under a customs warehousing procedure - Removal from customs supervision - Person responsible for the removal - Holder of the authorisation for customs warehousing - Penalty for failure to comply with the customs legislation - Obligation to pay a sum corresponding to the value of the missing goods - Combination with a pecuniary penalty - Concept of ‘removal from customs supervision’

Key aspects of the decision in the economic range:

Union Customs Code. National legislation under which, in the event of theft of goods placed under a customs warehousing procedure, a pecuniary penalty is imposed on the holder of the customs warehousing authorisation. National legislation under which, in the event of removal from customs supervision of goods placed under a customs warehousing procedure, the holder of the customs warehousing authorisation is required to pay, in addition to a pecuniary penalty, a sum corresponding to the value of those goods.

Concept of ‘removal from customs supervision’.

Proceedings between Customs Agency and Sch concerning the penalties imposed on that company in its capacity as holder of an authorisation for customs warehousing, following the theft of goods that it had been entrusted with storing for another party.

С-48/19 of 05 March 2020

Common system of value added tax - Cases of tax exemption - Provision of medical care in the exercise of medical and paramedical professions - Services provided by telephone - Services provided by nurses and medical assistants – Concept of „Provision of medical care“

Key aspects of the decision in the economic range:

Medical assistance services provided by telephone. Additional professional qualification requirements for nurses and nursing assistants, in order for the exemption provided for in Directive 2006/112 to apply to the services in question.

Concept of „Provision of medical care“.

Litigation regarding the refusal of the tax office to exempt from value added tax telephone consultations on various health matters and support programs, for patients suffering from chronic or long-term illnesses provided by a company, on behalf of public sickness funds.

С-211/18 of 05 March 2020

Value added tax — Exemptions — Hospital and medical care — Services provided under social conditions comparable to those applicable to bodies governed by public law — Right to opt for a taxation regime — Maintenance of the taxation — Variation in the conditions for the exercise of the activity — Concept of „Comparable social conditions“

Key aspects of the decision in the economic range:

Exemption from VAT of medical services which are provided by private entities but on terms comparable with those on which public bodies providing similar services operate. Principles of legitimate expectation, legal certainty and fiscal neutrality - exemption from VAT of care services provided by private hospitals, owing to a change in the conditions under which it carried on its activities that occurred after it opted for the taxation regime.

Concept of „Comparable social conditions“.

Proceedings concerning the Tax and Customs Authority’s decision requiring I to pay an amount corresponding to the value added tax (VAT) deducted in respect of medical services that it provided between 2014 and 2016 and to pay compensatory interest as well as default interest thereon.

С-679/18 of 05 March 2020

Consumer protection - Credit agreements for consumers - Creditor’s obligation to assess the consumer’s creditworthiness - Whether limitation may be invoked against the objection of nullity of the agreement raised by the consumer

Key aspects of the decision in the economic range:

Pre-contractual check of the consumer’s creditworthiness by the creditor. Creditor’s obligations to provide information upon conclusion of the agreement. Penalties in the event of failure to comply. National provision which prohibits national courts, on expiry of a limitation period or time bar, from finding and penalising, of their own motion or following an objection raised by the consumer, breaches of obligations.

Proceedings concerning a claim for payment of the outstanding amount due under an agreement relating to credit which a company had granted.

С-94/19 of 11 March 2020

Value added tax - Services supplied for consideration - Secondment of staff by a parent company to its subsidiary — Reimbursement by the subsidiary limited to the costs incurred

Key aspects of the decision in the economic range:

Taxable transactions. National legislation under which the lending or secondment of staff of a parent company to its subsidiary, carried out in return for only the reimbursement of the related costs.

Proceedings between S and the Revenue Authority concerning deductions made by S from VAT paid on sums repaid to its parent company, A, for the secondment of a director.

С-511/17 of 11 March 2020

Consumer protection — Unfair terms in consumer contracts — Foreign currency based loan contract — Examination by the national court of its own motion as to whether the clauses in the contract are unfair — Consideration of all the other terms of the contract for the purpose of assessing the unfairness of the contested term

Key aspects of the decision in the economic range:

National court’s duty to examine of its own motion (ex officio) unfair terms in consumer contracts. principle of ne ultra petita, according to which the court cannot rule beyond the pleadings of the parties. In order to assess whether the contractual term forming the basis of a consumer’s claim is unfair all the other terms of the contract should be taken into consideration.

Proceedings concerning the unfair nature of certain terms in a foreign currency mortgage loan agreement.

С-103/18 of 19 March 2020

Framework agreement on fixed-term work — Failure by the employer to comply with the legal deadline of the period fixed for the final occupation of a position temporarily occupied by a fixed-term worker — Implicit continuation of employment every year — Occupation of the same position by a fixed-term employee within two consecutive appointments — Measures to prevent and penalise the misuse arising from the use of successive fixed-term employment contracts or relationships — Selection procedures for the final occupation of temporary positions by fixed-term workers — Concept of “objective reasons” justifying the renewal of consecutive fixed-term employment contracts or relationships — Concept of „successive fixed-term employment contracts or relationships“

Key aspects of the decision in the economic range:

Social policy. Use of fixed-term contracts to meet the needs of staff. Consecutive fixed-term employment contracts in the public health sector. Measures to penalise the misuse arising from the use of successive fixed-term employment contracts or relationships. Conversion of the temporary regulated relationship into an indefinite employment. Specific consideration revealing that the consistent renewal of fixed-term employment contracts is intended to meet the employer's continuing and lasting staffing needs. Providing the employee with compensation comparable to that for unfair dismissal. Applicability of the Framework Agreement on fixed-term work, notwithstanding the fact that the employee has agreed to successive renewals of fixed-term contracts. No obligation for national courts to leave without application non-compliant national legislation. Powers of the national court. Concept of “objective reasons” justifying the renewal of consecutive fixed-term employment contracts or relationships — Concept of „successive fixed-term employment contracts or relationships“.

Two proceedings concerning the recognition of persons as part of permanent staff with statutory status or, alternatively, as employees of a public administration with a similar status to whom the principles of stability and permanence apply.

February

 

С-405/18 of 27 February 2020

Freedom of establishment - Corporation tax - Transfer of a company’s place of effective management to a Member State other than its registered seat — Transfer of tax residency to that other Member State — National legislation not allowing a tax loss incurred in the Member State of incorporation before the transfer of its seat to be claimed

Key aspects of the decision in the economic range:

Cross-border cross-period loss relief. Non-allowance of losses incurred prior to the transfer of the place of management to another Member State. Final losses in the case of a transfer of the place of management. Possibility for a company, which has transferred its place of effective management and, as a result, its tax residency to that Member State, from claiming a tax loss incurred, prior to that transfer, in another Member State, in which it has retained its registered seat.

Proceedings between company A and the Tax Directorate concerning the latter’s refusal to allow that company to deduct a tax loss which it incurred in a Member State other than the Czech Republic.

 

© Апис Европа АД

Представяне на "АПИС ФИНАНСИ" 


EuroCases

340VAT excl.

for account per year

For full pricelist see here

Buy now Free trial
TAX & FINANCIAL STANDARDS

240VAT excl.

for account per year

For full pricelist see here 

Buy now Free trial