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

04.01.2021

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

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

New judgments

С-488/18 of 10 December 2020

Value added tax — Exemptions from VAT of certain services closely linked to sport or physical education — Direct effect — Concept of “non-profit organisations“

Key aspects of the decision in the economic range:

Common system of value added tax (VAT). Exemptions. Supply of services closely linked to sport. Extent of Member States’ margin of appreciation. Legislation of a Member State which exempts from VAT only certain number of supplies of services closely linked to sport or physical education. Concept of “non-profit organisations“.

Proceedings concerning the refusal of the tax authorities to exempt from VAT certain services closely linked to the practice of golf provided by G.

С-735/19 of 10 December 2020

Protection of minority shareholders — Mandatory takeover offer — Method for calculating the value of shares to determine the fair price — Power for adjusting the fair value — Exceptions to the standard calculation method in circumstances and in accordance with clearly defined criteria — International Financial Reporting Standard 10 — Consolidated financial statements — Responsibility of the Member State concerned — Damage suffered by the offeror as a result of an offer with too high a price

Key aspects of the decision in the economic range:

In what circumstances may Member States oblige the offeror to pay to the remaining shareholders a price other than the highest price paid by the offeror. Determining the fair price of the offer. Taking into account a price other than the highest price paid by the offeror. Approval of the price of the proposal by the supervisory authority. Calculation of the share price on the value of the enterprise. Objective evaluation criteria, which are generally used in financial analysis. State liability for incorrect transposition or application of Union law. Right to compensation of the offeror due to the determination of an inflated price. Fixed compensation reduction. Fair compensation.

Proceedings between E and Financial Market Commission on the request, on the one hand, to declare the illegality of a decision by which this Commission the Commission authorizes the repurchase of the shares of V which are the subject of a takeover bid and, on the other hand, to award compensation for the damage suffered as a result of that decision.

С-346/19 of 17 December 2020

Value added tax - Laying down detailed rules for the refund of value added tax to taxable persons not established in the Member State of refund but established in another Member State - Refund of VAT - Indication of number of the invoice — Refund application

Key aspects of the decision in the economic range:

Where an application for a refund of VAT does not contain a sequential number of the invoice, but contains another number which allows that invoice, and thus, the good or service in question, to be identified, the tax authority of the Member State of refund must consider that application ‘submitted’. The tax authority may request that the applicant produce a sequential number which uniquely identifies the invoice.

Proceedings between the Federal Central Tax Office and Y, concerning the refusal to refund value added tax to that company.

С-656/19 of 17 December 2020

Value added tax — Exemptions on exportation — Goods dispatched or transported outside the European Union by a customer not established within the territory of the Member State concerned — Goods which have actually left the territory of the European Union — Proof — Refusal of the exemption on exportation — Principles of fiscal neutrality and proportionality — Concepts of „Goods to be carried in the personal luggage of travelers” not established within the European Union and „personal luggage“.

Key aspects of the decision in the economic range:

Exemption, provided for in the VAT Directive, does not cover goods which an individual not established within the European Union takes with him or her outside the European Union for commercial purposes, with a view to the resale of those goods in a third State. Principles of fiscal neutrality and proportionality precluding a national practice under which the tax authorities automatically deny a taxable person the benefit of the VAT exemption where it finds that that taxable person has, in bad faith, issued the form on the basis of which the purchaser has made use of the exemption. Concepts of „Goods to be carried in the personal luggage of travelers” not established within the European Union and „personal luggage“.

Proceedings concerning a decision refusing the exemption from value added tax (VAT) provided for goods to be carried in the personal luggage of travellers.

С-801/19 of 17 December 2020

Value added tax – Exemptions – Provision of funds in return for payment – Transfer of a bill of exchange to a factoring company and the money obtained to the issuer of the bill of exchange – Definitions of „granting of credit“ and „other negotiable instruments“

Key aspects of the decision in the economic range:

Exemption from value added tax on granting credit and transactions concerning other negotiable instruments. Exemption, applicable to a transaction which consists in the making available of funds obtained from a factoring company by one taxable person to another taxable person, for remuneration, following the transmission to the latter of a bill of exchange. Definitions of „granting of credit“ and „other negotiable instruments“.

Proceedings concerning the determination of the value added tax due in respect of the remuneration received by F in return for making available to K d.d. funds obtained from factoring companies holding bills of exchange issued by the latter and whose repayment was guaranteed by F.

 

December

 

С-269/19 of 25 November 2020

Consumer protection — Powers, that Directive 93/13 confers on the national court in a situation in which the contract cannot continue to exist without the unfair terms, but in which the national court cannot replace those terms with a supplementary provision of national law.— Consequences of a term being found to be unfair — Replacement of the unfair term — Method for calculating the variable interest rate — Referral of the parties to negotiations

Key aspects of the decision in the economic range:

Unfair terms in consumer contract, where that contract cannot continue to exist following the removal of the unfair terms in question and there are no supplementary provisions under national law that may replace those unfair terms.

National court, which invites the parties to negotiate with the aim of establishing the method for calculating the interest rate, provided that that court sets out the framework for those negotiations and those negotiations seek to establish an effective balance between the rights and obligations of the parties.

Proceedings concerning several allegedly unfair and void terms in a credit agreement relating to the grant of a personal loan.

С-799/19 of 25 November 2020

Social policy - Protection of employees in the event of the insolvency of their employer - Accident at work - Death of the employee – Compensation for non-material damage – Recovery of the claim against the employer – Impossible - Concepts of ‘employees’ outstanding claims’ and ‘insolvency of an employer’

Key aspects of the decision in the economic range:

An employer cannot be deemed to be in a ‘state of insolvency’ where an action for enforcement has been brought against that employer in connection with a judicially recognised claim for compensation, but the claim is deemed irrecoverable in the enforcement proceedings on account of that employer’s informal insolvency. Does the term 'remuneration' cover the compensation which the employer owes to the heirs for non-pecuniary damage suffered as a result of the death of a worker.

Concepts of ‘employees’ outstanding claims’ and ‘insolvency of an employer’.

Proceedings between the wife and two children of the employee R, and Social Insurance Agency concerning the latter’s refusal to pay them compensation for non-material damage suffered as a result of the death of that employee after an accident at work.

 

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