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Tax & Financial Standards New Judgments of the ECJ For February 2024

27.02.2024

Tax & Financial Standards New Judgments of the ECJ For February 2024

Tax & Financial Standards New Judgments of the ECJ For February 2024

February

С-733/22 of 8 February 2024
Common system of value added tax – Option for the Member States to apply a reduced rate of VAT to certain supplies of goods and services – Reduced rate of VAT applicable to accommodation provided in hotels and similar establishments – Application of that rate only to accommodation facilities with a categorisation certificate – Principle of fiscal neutrality
Key aspects of the decision in the economic range:
National legislation under which the reduced rate of VAT for accommodation provided in hotels and similar establishments is subject to a requirement that such an establishment hold a categorisation certificate or a provisional categorisation certificate, in so far as that legislation does not limit the application of the reduced rate of VAT to concrete and specific aspects of the category of provision of accommodation provided in hotels and similar establishments or, in the event that it limits the application of that rate to those concrete and specific aspects, it does not comply with the principle of fiscal neutrality.
Proceedings concerning application of the reduced rate of value added tax to a company’s activities in a period during which it did not have a categorisation certificate for the accommodation facility that it manages.
С-661/22 of 22 February 2024
Supervision of credit institutions — Payment services in the internal market — Payment service or payment transaction — Issuance of electronic money — Holding of customer funds by a payment institution without a specific payment order — Classification — Concepts of „payment service“, "payment transaction" and „electronic money“
Key aspects of the decision in the economic range:
Activity of a payment institution consisting of the holding of customers’ funds without a specific payment order for longer than the statutory time limit for carrying out a payment transaction. Issuance of electronic money. Activity of a payment institution which consists in receiving funds from a user of a payment service, where such funds are not immediately accompanied by a payment order and therefore remain available on a payment account, constitutes a payment service provided by that payment institution, and not a transaction consisting in the issuance of electronic money.
Concepts of „payment service“, "payment transaction" and „electronic money“.
Proceedings concerning the withdrawal of the payment institution licence.
С-674/22 of 22 February 2024
Taxes levied in breach of EU law – Obligation to refund value added tax and to pay interest on that amount – Refund resulting from errors made in the taxable person’s accounts – Refund resulting from the retroactive amendment of the detailed rules for calculating the deductible VAT relating to the taxable person’s general costs
Key aspects of the decision in the economic range:
EU law must be interpreted as not requiring the payment of interest to a taxable person as from the payment of an amount of VAT which is subsequently refunded by the tax authority, where that refund results, in part, from the finding that that taxable person, due to errors in its accounts, did not fully exercise its right to deduct input VAT and, in part, from an amendment, with retroactive effect, of the detailed rules for calculating the deductible VAT relating to the general costs of that taxable person where those rules are established under the sole responsibility of that taxable person.
Proceedings between municipality and the the tax authority, concerning the latter’s refusal to pay recovery interest to the municipality on an amount of VAT refunded to that municipality.

January

С-442/22 of 30 January 2024
Common system of value added tax — Obligation to pay — Person who enters VAT on an invoice — Person liable to pay VAT — Fake invoices issued by an employee including the employer’s details without its knowledge or consent — Employer due diligence
Key aspects of the decision in the economic range:
VAT Directive. Invoice for fictitious transactions (fake invoice). Fault in selection and supervision on the part of a taxable person. where an employee of a taxable person for value added tax purposes has issued a fake invoice showing VAT using the employer’s identity as a taxable person, without that employer’s knowledge or consent, that employee must be considered to be the person who enters the VAT, unless that taxable person did not exercise the due diligence reasonably required to monitor the conduct of that employee.
Proceedings between company P and the tax authority regarding value added tax debts in respect of fake invoices issued by an employee of Company P.
С-471/22 of 30 January 2024
European Union Cohesion Funds — Financial corrections in connection with detected irregularities— Commission decision annulling in part a contribution from that fund — Validity — Charter of Fundamental Rights of the European Union — Right to good administration —Right to an effective remedy before a tribunal
Key aspects of the decision in the economic range:
Financial corrections by the Commission. Тhe competent national authorities must pursue the recovery of the sums unduly paid, by imposing a financial correction on the beneficiary of the funds, at the end of an autonomous administrative procedure during which that beneficiary has been able usefully and effectively to express its observations. А national court being bound by a final Commission decision cancelling, on account of an irregularity, all or part of a contribution from an EU fund, where an action against the national act imposing, in implementation of that decision, a financial correction on the beneficiary of that fund, is brought before that court.
Proceedings concerning the financial correction in the amount of 5% of the value of a contract, funded by a grant awarded under the operational programme.


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