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Tax & Financial Standards New Judgments of the ECJ For February 2021


Tax & Financial Standards New Judgments of the ECJ For February 2021

Tax & Financial Standards New Judgments of the ECJ For February 2021

Tax&Financial Standards (T&FSt) – International Financial Reporting Standards, Date or entry into force: 1.01.2021 (consolidated version), in 4 languages - Bulgarian, English, German and French

New judgments

С-760/18 of 11 February 2021

Social policy - Framework agreement on fixed-term employment - Measures to prevent abuse arising from the use of successive fixed-term employment contracts or relationships – Fixed-term employment contracts in the public sector – Successive contracts or extended initial contract – Absolute constitutional prohibition on conversion of fixed-term employment contracts to contracts of indefinite duration – Obligation to interpret in conformity with EU law - Concept of ‘successive fixed-term employment contracts’

Key aspects of the decision in the economic range:

The expression ‘successive fixed-term employment contracts’ therein also covers the automatic extension of the fixed-term employment contracts of workers, which has taken place in accordance with express provisions of national law, notwithstanding the fact that the generally prescribed formal requirement that successive contracts be concluded in writing has been disregarded. An assessment of whether the provisions of earlier national legislation, which remain in force, and which permit the conversion of a succession of fixed-term contracts to one employment contract of indefinite duration, may, where appropriate, be applied for the purposes of that interpretation in conformity with EU law, even though national constitutional provisions impose an absolute prohibition, in the public sector, on such conversion.

Concept of ‘successive fixed-term employment contracts’.

Proceedings between workers, and their employer, the administrative authority, concerning the legal classification of their employment relationships, in so far as they are employed by the cleansing department of that municipality, for a fixed term.

Joined Cases С-229/19 and C-289/19 of 27 January 2021

Unfair terms in consumer contracts — Term fixing in advance the creditor’s potential advantage in the event of termination of the contract — Significant imbalance in the parties’ rights and obligations under the contract — Date on which the imbalance must be assessed — Finding that a term is unfair — Replacement of an unfair term with a supplementary provision of national law — Concepts of „good faith“ and „significant imbalance“

Key aspects of the decision in the economic range:

A term in a risk-weighted contract concluded between a seller or supplier and a consumer, such as share leasing agreements, must be regarded as unfair, since, having regard to the circumstances surrounding the conclusion of the contract in question and by reference to the date of its conclusion, that term may create a significant imbalance between the rights and 

obligations of the parties during the performance of the contract. A term fixing in advance the advantage which the seller or supplier is to enjoy in the event of premature termination of the contract was, from the time that contract was concluded, liable to create such an imbalance.

Concepts of „good faith“ and „significant imbalance“.

Two sets of proceedings between D and consumers, concerning the refusal to pay final statements drawn up by D following the termination of the share leasing agreement concluded between those consumers and a company of which D was the successor.




С-393/19 of 14 January 2021

Charter of Fundamental Rights of the European Union – Right to property - Right to an effective remedy - Confiscation of crime-related proceeds, instrumentalities and property - Freezing and confiscation of instrumentalities and proceeds of crime in the European Union – National legislation providing for the confiscation, for the benefit of the State, of property used to commit the offence of smuggling – Property belonging to a third party acting in good faith - Concept of ‘confiscation’

Key aspects of the decision in the economic range:

Confiscation of crime-related proceeds, instrumentalities and property. National legislation that permits the confiscation of an instrumentality used to commit an aggravated smuggling offence, where that property belongs to a third party acting in good faith. National law which permits the confiscation, in the context of criminal proceedings, of property belonging to a person other than the person who committed the criminal offence, without the former being afforded an effective remedy. Vehicle belonging to a bona fide third party.

Concept of ‘confiscation’.

Criminal proceedings brought against OM concerning the confiscation, following his conviction for aggravated smuggling, of property used to commit that infringement which belongs to a third-party acting in good faith.

С-288/19 of 20 January 2021

Value added tax — Transactions treated as supplies of services for consideration — Determination of the point of reference for tax purposes — Hiring of means of transport — Making cars available to employees — Concepts of „supply of services“ and „hiring of means of transport“

Key aspects of the decision in the economic range:

The provision by a taxable person of a vehicle forming part of the assets of the taxable person’s business for his employee’s private use as a subject to value added tax. Eventual conditions for such taxation. Does such a transaction constitute the hiring of a means of transport?

Concepts of „supply of services“ and „hiring of means of transport“.

Proceedings between the company Q and the Tax Office concerning the latter’s decision whereby the former’s act of making cars available to two of its employees working in Luxembourg and resident in Germany was made subject to value added tax (VAT).

С-420/19 of 20 January 2021

Recovery of claims relating to taxes, duties and other measures — Mutual assistance — Request for precautionary measures — Judicial decision of the applicant Member State for the purpose of implementing precautionary measures — Jurisdiction of the court of the requested Member State to assess and reassess the justification of those measures

Key aspects of the decision in the economic range:

Competence of the court in the requested Member State to assess whether the conditions for taking precautionary measures have been met on the basis of its national law and in accordance with its administrative practices. The courts of the requested Member State, ruling on a request for precautionary measures, are bound by the assessment of the factual and legal compliance with the conditions laid down for the application of those measures made by the authorities of the applicant Member State.

Proceedings between Tax and Customs Authority, Estonia, and H regarding the adoption, in Estonia, of precautionary measures requested by the Finnish tax authority against that company.





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