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

29.03.2024

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

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

 

March

 

С-341/22 of 7 March 2024

Common system of value added tax — Right to deduct VAT — Non-operating company —National legislation denying the right of deduction, refund or offsetting of input VAT - Principle of fiscal neutrality – Principle of proportionality - Concept of „taxable person“ and „economic activity“

Key aspects of the decision in the economic range:

Rebuttable presumption based on a proportion of the value of economic transactions as compared to fixed assets. Legitimate expectations.

National legislation under which the taxable person is denied the right to deduct input VAT on account of the transactions subject to output VAT carried out by that taxable person being considered insufficient.

Proceedings concerning the exercise of the right to deduct VAT.

С-536/22 of 14 March 2024

Credit agreements for consumers relating to residential immovable property — Early repayment — Compensation of the creditor — Loss of profit of the creditor — Method of calculating loss of profit — National legislation providing for compensation covering the creditor’s loss of profit – — Concepts of „costs“ and „compensation“

Key aspects of the decision in the economic range:

Creditor’s right to receive ‘fair and objective compensation, where justified’ for possible costs directly linked to early repayment of the credit. In the event of early repayment of a consumer credit relating to residential immovable property, Member States must ensure that the calculation by the creditor of its loss of profit, taking into account the flat-rate return on the sum repaid early, has the result that the compensation is fair and objective, that it does not exceed the creditor’s financial loss.

Concepts of „costs“ and „compensation“

Proceedings concerning a claim for recovery of compensation paid on account of the early repayment of a consumer credit relating to residential immovable property.

С-606/22 of 21 March 2024

Value added tax - Sale of passes giving access to services whose existence is evidenced by a cash register and by cash register receipts – Taxable amount – Error in the tax rate – Principle of fiscal neutrality – Adjustment of the tax debt as a result of a change in the taxable amount – National practice that does not permit, in the absence of an invoice, a correction of the VAT and a refund of the overpaid VAT – No risk of loss of tax revenue

Key aspects of the decision in the economic range:

A taxable person that erred in applying a VAT rate that is too high is entitled to submit an application for a refund to the tax authorities, since those authorities may rely on unjust enrichment on the part of that taxable person only if they have established, following an economic analysis which takes account of all the relevant circumstances, that the economic burden that the tax levied though not due imposed on that taxable person has been completely neutralised.. The principles of tax neutrality, efficiency and equal treatment do not allow the practice of the tax administration prohibiting the correction of the due VAT by means of a tax return with the argument that invoices were not drawn up for these transactions, but fiscal receipts were issued from a cash register.

Principle of nemo auditur propriam turpitudinem allegans.

Proceedings regarding the refusal of the tax administration to establish, in the absence of an invoice, an overpayment of value added tax based on the latter's submitted corrective VAT returns.

С-714/22 of 21 March 2024

Consumer credit agreements - Total cost of the credit to the consumer – No indication of the relevant costs – Penalty –- Services ancillary to a credit agreement – Terms giving priority to the examination of the credit application of a consumer purchasing those services and to the making available of the sum borrowed as well as providing that consumer with the option of deferring or rescheduling the monthly loan instalments, in return for payment of additional costs - Concept of ‘total cost of the credit to the consumer’

Key aspects of the decision in the economic range:

Unfair terms in consumer contracts. The costs relating to services ancillary to a consumer credit agreement that give priority to the examination of the credit application of the consumer purchasing those services and to the making available of the sum borrowed as well as provide that consumer with the option of deferring the repayment of the monthly instalments or reducing the amount thereof come within the concept of ‘total cost of the credit to the consumer’, within the meaning of that provision, and, consequently, that of ‘APRC’. A consumer credit agreement, deemed to be free of interest and charges where that agreement does not specify an APRC.

Concept of ‘total cost of the credit to the consumer’.

Proceedings concerning the invalidity of a credit agreement and the consequences thereof for the repayment of sums due by way of interest and charges paid under that agreement.

 

February

 

С-314/22 of 29 February 2024

Common system of value added tax — Reduction of the taxable amount — Total or partial non-payment of the price — Limitation period regarding applications for a subsequent reduction in the taxable amount of VAT — Date from which the limitation period begins to run — Taxable person’s entitlement to interest

Key aspects of the decision in the economic range:

Option to derogate available to Member States under Article 90(2) of the VAT Directive. Legislation of a Member State which provides for a limitation period to apply for a VAT refund resulting from a reduction in the taxable amount of VAT in the event of total or partial non-payment, the expiry of which results in penalising an insufficiently diligent taxable person. A requirement on the part of the tax authority which renders the reduction in the taxable amount of value added tax (VAT), in the event of total or partial non-payment of an invoice issued by a taxable person, subject to the condition that that taxable person corrects the initial invoice beforehand and that it communicates beforehand to its debtor its intention to cancel the VAT. Right to refund of the VAT paid by a taxable person, together with interest for late payment. Starting point for the calculation of that interest.

Proceedings concerning a refusal to grant an adjustment of the amount of value added tax paid in respect of the unpaid debts of debtors.

С-466/22 of 29 February 2024

Internal market – Electronic identification and trust services for electronic transactions — Electronic signatures – Legal effect and evidential value in legal proceedings – Concept of ‘qualified electronic signature’

Key aspects of the decision in the economic range:

Electronic identification and trust services for electronic transactions in the internal market. The courts of the Member States are required, where the requirements of point 12 of Article 3 of that regulation are met, to recognise the evidential value of the qualified electronic signature as equivalent to that of the handwritten signature to the extent that the relevant national legal regime provides for that handwritten signature.

Proceedings concerning a notification of tax liability for corporation tax.

С-676/22 of 29 February 2024

Refusal to grant exemption in respect of intra-Community supplies of goods — Supplier of goods not proving delivery of the goods to the recipient indicated in the tax documents — Supplier presenting other information proving that the actual recipient has the status of taxable person

Key aspects of the decision in the economic range:

Exemption from VAT when a supply of goods to another Member State. Substantive conditions ensuring the correct and straightforward application of the exemptions and of preventing any possible evasion, any avoidance or any abuse. Recipient, who has the capacity of the taxable person. Transfer of the right to dispose of goods as owner. Physical movement of the goods from one Member State to another.

Proceedings between B and the tax directorate, concerning the refusal of the tax authorities to exempt from value added tax a number of intra-Community supplies made by that company.


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