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30.10.2023

Tax & Financial Standards New Judgments of the ECJ For October 2023

Tax & Financial Standards New Judgments of the ECJ For October 2023

October

С-146/22 of 5 October 2023

Value added tax — Discretionary power of the Member States to apply a reduced rate to certain supplies of goods and services — Similar foodstuffs prepared from the same main ingredient — Application of different reduced VAT rates — Goods with the same objective characteristics and properties — Goods accompanied by preparation and serving services on the part of the supplier or not accompanied by such services
Key aspects of the decision in the economic range:
Application of two different reduced VAT rates on goods with the same objective characteristics and properties. The principle of fiscal neutrality, which is not precluding national legislation which provides that foodstuffs consisting of the same main ingredient and meeting the same need on the part of the average consumer are subject to two different reduced VAT rates, depending on whether they are sold at retail level in shops or are prepared and served to a customer at his or her request, with a view to their immediate consumption, provided that those foodstuffs do not have similar properties despite having a main ingredient in common.
Proceedings, concerning the value added tax rate applicable to sales of chocolate dairy beverages in establishments.

С-355/22 of 5 October 2023

Common system of value added tax — Maintenance of the effects of national legislation incompatible with EU law
Key aspects of the decision in the economic range:
A national court may not make use of a national provision empowering it to maintain certain effects of a provision of national law which it has found to be incompatible with Directive 2006/112, on the basis of an alleged impossibility of refunding the VAT wrongly levied.
Proceedings, concerning a report and a collection and recovery notice for value added tax (VAT) due, a fine and interest.

С-505/22 of 5 October 2023

Value added tax – Taxable transactions – Supply of goods for consideration – Free supply of a tablet or smartphone in exchange for a new subscription to a magazine – Concept of ‘single supply’ – Application of goods for business use as gifts of small value – Concept of „single supply“ and „ supply of goods for consideration“
Key aspects of the decision in the economic range:
The common system of value added tax - the principles of neutrality, equal treatment, non-discrimination and proportionality. The provision of a subscription gift in return for taking out a subscription to periodicals constitutes a supply that is ancillary to the principal service of supplying periodicals, which falls within the concept of a ‘supply of goods for consideration’ and must not be regarded as a disposal of goods free of charge.
Proceedings concerning the imposition of value added tax on a supply as subscription gifts, of tablets or smartphones to new subscribers to the magazines which it markets.

С-565/22 of 5 October 2023

Consumer protection - Distance contract - Information requirements for distance and off-premises contracts - Subscription of a consumer to an online learning platform – Automatic extension of the contract – Right of withdrawal
Key aspects of the decision in the economic range:
The consumer’s right to withdraw from a distance contract is guaranteed only once in respect of a contract for the performance of services which provides for an initial free period for the consumer after which – unless the consumer terminates or withdraws from that contract during that period – payment is required for a period that is automatically extended – unless that contract is terminated – for a fixed term.
Proceedings concerning the request that a company be ordered to inform consumers of the conditions, time limits and procedures for exercising their right to withdraw from a distance contract.

С-286/22 of 12 October 2023

Insurance against civil liability in respect of the use of motor vehicles – National legislation providing for the automatic compensation of certain road users who are the victims of a road accident – Bicycle equipped with an electric motor providing pedal assistance, equipped with a boost function which can be activated only after the use of muscular power - Concept of a ‘vehicle’
Key aspects of the decision in the economic range:
Compulsory insurance of vehicles. Person not driving a ‘motor vehicle’. The concept of a ‘vehicle’ does not encompass a bicycle whose electric motor provides pedal assistance only and which is equipped with a function allowing the bicycle to accelerate to a speed of 20 km/h without pedalling, a function which may however be activated only after the use of muscular power.
Concept of a ‘vehicle’.
Proceedings concerning the potential right of an occupational accident insurer, which is subrogated to the rights of a cyclist who was riding an electric bicycle, to receive compensation from the civil liability insurer of the driver of the vehicle involved in the accident which led to the death of that cyclist.

С-326/22 of 12 October 2023

Consumer protection — Credit agreements for consumers — Contractual rights and obligations — Early repayment — Reduction in the total cost of the credit for consumers — Loss of a copy of the agreement  — Right to obtain a duplicate of the agreement from the creditor — Transfer of claims, corresponding to the amounts owed by the bank following early repayment
Key aspects of the decision in the economic range:
A consumer may request, from the creditor, a copy of an agreement and all information concerning the repayment of the credit not featured in the agreement itself, but which is necessary for verifying the calculation of the sum owed by the creditor by virtue of the reduction in the total cost of the credit due to its early repayment and for allowing that consumer to bring a possible action for the recovery of that amount.
Proceedings between Z and a banking institution, concerning a request to obtain documents and information for the purpose of recovering a debt, of which Z. is the assignee, corresponding to the amount owed by the bank by virtue of the reduction in the total cost of the credit due to the early repayment of that credit.

С-325/22 of 19 October 2023

Aid granted by Member States — Recovery of unlawful aid — Swaps of forest land — Determining the ‘market value’ — State aid, granted to undertakings in the context of swap transactions of publicly owned forest land in return for privately owned forest land — Concept of an ‘undertaking’
Key aspects of the decision in the economic range:
Undertakings in receipt of State aid. Persons, who have acquired land in the context of the forest land swap transactions concerned by that decision and who use that land for the purposes of an economic activity. Criteria for determining the amount of State aid received on the acquisition of land, in the context of a forest land swap.
Proceedings, concerning a claim for repayment of State aid, received in connection with a swap of forest land.
Joined Cases С-207/22 - С-267/22 and C-290/22 of 26 October 2023
Economic and monetary policy - Supervision of the European Union’s financial sector - Prudential supervision of credit institutions and investment intermediaries - An undertaking whose activity is to acquire shareholdings - Concept of "financial institution"
Key aspects of the decision in the economic range:
Implementation of tax exemption only for "financial institutions". Holding companies. Management of shares in undertakings which are not subject to the supervision and the prudential requirements applicable to banking or financial activities. An enterprise whose activity is to acquire shares in companies that do not operate in the financial sector does not fall within the scope of the term "financial institution".
Disputes over the imposition of a coat of arms on credit operations.

С-331/21 of 26 October 2023

Prohibition of agreements, decisions and concerted practices – Distinction between a vertical and a horizontal agreement – Potential competition – Restriction of competition by object or by effect – Agreement between a supplier of electricity and a retailer of consumer products operating hypermarkets and supermarkets – Non-compete clause - Liberalisation of the electricity supply market - Concept of ‘potential competition’ and „restriction of competition by object“
Key aspects of the decision in the economic range:
Liberalisation of the electricity supply market. An undertaking managing a network of consumer product retailers must be regarded as being, on the electricity market, a potential competitor of an electricity supplier with which it has concluded an association agreement containing a non-compete clause. A commercial association agreement concluded between two undertakings active on different product markets which are not upstream or downstream of each other, does not fall within the category of a ‘vertical agreement’ and an ‘agency agreement’ where that agreement consists of promoting the development of sales of the products of those two undertakings.
Concept of ‘potential competition’ and „restriction of competition by object“.
Proceedings concerning fines imposed on account of an anticompetitive agreement having been concluded.