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Tax & Financial Standards New Judgments of the ECJ For July 2022

01.08.2022

Tax & Financial Standards New Judgments of the ECJ For July 2022

Tax & Financial Standards New Judgments of the ECJ For July 2022

Tax&Financial Standards (T&FSt) – International Financial Reporting Standards, Date or entry into force: 1.01.2022 (consolidated version), in 4 languages - Bulgarian, English, German and French

New judgments

С-194/21 of 7 July 2022

Value added tax (VAT) — Adjustment of deductions — Taxable person who did not exercise their right of deduction before the expiry of a limitation period  — No possibility of making that deduction in the context of adjustment

Key aspects of the decision in the economic range:

Admission of a taxable person who failed to exercise, before the expiry of the limitation period, the right to deduct VAT relating to the acquisition of goods or services, from being denied the possibility of subsequently making that deduction, by way of an adjustment, at the time when those goods or services are first used for the purposes of taxed transactions.

Proceedings concerning the adjustment of a failure to deduct input value added tax (VAT) on the acquisition of building land.

С-696/20 of 7 July 2022

Value added tax - Intra-Community acquisition of goods - Place - Chain of successive transactions - Misclassification of part of the transactions - Principles of proportionality and fiscal neutrality

Key aspects of the decision in the economic range:

Non-exempt intra-Community supply. Reclassification of a transaction within a chain of transactions by the tax authority. Obligation to pay value added tax on the transaction incorrectly classified as a domestic transaction by a party. A Member State's legislation is not allowed if the intra-Community acquisition of goods which is deemed to have taken place in the territory of that Member State results from an intra-Community supply of goods which is not treated as an exempt transaction in that Member State.

Proceedings concerning the determination of the amount of refundable value added tax.

С-36/21 of 14 July 2022

Common agricultural policy – Application for payment entitlements from the national reserve for young farmers – National administrative authority which has given incorrect information about the classification of a person as a ‘young farmer’ – Principle of the protection of legitimate expectations – Action seeking reparation for loss or harm based on the failure to comply with the national law principle of legitimate expectations – Concept of „young farmer“

Key aspects of the decision in the economic range:

The principle of the protection of legitimate expectations must be interpreted as not precluding an injured party from obtaining, by virtue of the principle of the protection of legitimate expectations recognized by national law and solely on the basis of that law, compensation for loss or harm resulting from a misinterpretation by a national authority of an unambiguous provision of EU law, provided that that compensation is not equivalent to the grant of an advantage contrary to EU law, that it is not borne by the EU budget and that it is not such as to give rise to distortions of competition between Member States.

Concept of „young farmer“.

Proceedings concerning compensation for the loss or harm allegedly suffered as a result of erroneous information communicated to S by the Netherlands Enterprise Agency concerning the application of provisions of Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural.

 

June

 

С-56/21 of 30 June 2022

Common system of value added tax (VAT) — Optional tax liability scheme — National legislation which makes the right of a taxable person to opt to charge VAT on the sale of immovable property conditional on the transfer of that property to a taxable person already registered for VAT purposes — Obligation to adjust VAT deductions where that condition is not satisfied — Principles of fiscal neutrality, of effectiveness and of proportionality

Key aspects of the decision in the economic range:

Value added tax. Possibility optional tax liability in case of exempted transactions. Conditions for the right to choose. National legislation and practice under which the seller of immovable property is required to adjust the deduction of input VAT on that property following the refusal to recognise the seller’s right of option for taxation in respect of that sale on the ground that, at the time of the sale, the purchaser did not satisfy the conditions.

Proceedings concerning the exercise of the right of option for taxation in respect of immovable property sold to a taxable person not registered for value added tax (VAT) purposes at the time of the sale and the detailed rules for the implementation of the right to deduct input VAT.

С-146/21 of 30 June 2022

Common system of value added tax (VAT) — Reverse charge mechanism — National legislation imposing a condition of registration for VAT purposes for the application of that mechanism — Principle of fiscal neutrality

Key aspects of the decision in the economic range:

National legislation under which the reverse charge mechanism is not applicable to a taxable person who had neither applied for, nor obtained on his or her own initiative, registration for VAT purposes before carrying out the taxable transactions. Granting a derogation permit.

Proceedings concerning the competent tax authority’s decision to require V to make a retroactive payment of value added tax (VAT) in respect of standing timber, and refusing to apply the reverse charge mechanism.

С-170/21 of 30 June 2022

Consumer credit - Official check - Refusal to issue an enforcement order in the case of a claim based on an unfair term - Consequences related to the unfair nature of a contractual clause - Right to refund - Principles of equity and efficiency - Official interception

Key aspects of the decision in the economic range:

The national court, referred to with an application for the issuance of an order for the fulfillment of a monetary obligation — given the fact that the consumer debtor does not participate, is obliged ex officio to leave inapplicable an unfair clause in the consumer credit agreement, on which part of the claim is based. The court may partially reject this application, provided that the relevant contract can continue to operate. An official set-off between a payment made on the basis of an unfair term in a consumer credit agreement and the remaining amount due under the agreement.

Proceedings between a financial institution established under Bulgarian law and the consumer, regarding the application for the issuance of an order for the fulfillment of a monetary obligation on the basis of a consumer credit agreement concluded between the parties in the main proceedings.

С-807/19 of 26 November 2020

Consumer protection — Unfair terms in consumer contracts — Examination by the national court of its own motion — – National order for payment procedure — An enforcement order for immediate payment, based on bank ledger excerpts

Key aspects of the decision in the economic range:

A national court, before which an application for an order for payment has been brought, but which dispense with an examination of the possible unfairness of a term of a contract concluded between a seller or supplier and a consumer on account of practical difficulties, such as its workload. A court, which also takes into account national provisions ensuring a higher level of consumer protection than that provided for by Directive 93/13/EEC.

Proceedings, in the context of order for payment procedures.

 


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