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31.05.2024

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

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

May

С-241/23 of 8 May 2024

Common system of value added tax — Supply of goods or services — In-kind contribution of property — Taxable amount — Consideration — Shares — Nominal value — Issue value

Key aspects of the decision in the economic range:

The taxable amount of a contribution of property by one company to the capital of a second company in exchange for shares in the latter must be determined in relation to the issue value of those shares where those companies agreed that the consideration for that capital contribution was to be that issue value.

Proceedings between P and the appellate authority, concerning that authority’s refusal to take into account the deduction, made by that company, of amounts of value added tax shown in invoices issued by W. and B. in respect of property contributions made by those companies to P.’s capital.

С-222/23 of 16 May 2024

Judicial cooperation in civil matters – Jurisdiction and the enforcement of judgments in civil and commercial matters – Order for payment procedure – National of a Member State having his or her permanent address in that Member State and his or her current address in another Member State – No possibility of changing or renouncing that permanent address - Concept of ‘domicile’

Key aspects of the decision in the economic range:

National legislation under which nationals of a Member State who reside in another Member State are deemed to be domiciled at an address which remains at all times registered in the first Member State. National legislation, as interpreted in national case-law, from conferring on a court of a Member State jurisdiction to issue an order for payment against a debtor in respect of whom there are reasonable grounds to believe that he or she was domiciled, on the date on which the application for an order for payment was made, in the territory of another Member State.

Concept of ‘domicile’.

Proceedings seeking the issue of an order for payment, brought by a thermal energy supplier, against a customer, for a sum of money corresponding to the value of the heating supplied for that customer’s apartment in Sofia (Bulgaria).

С-695/22 of 16 May 2024

Freedom to provide services — Markets in financial instruments — Exempted investment intermediary — Legislation of a Member State prohibiting that intermediary from transmitting clients’ orders to an investment firm established in another Member State

Key aspects of the decision in the economic range:

Investment intermediaries. Fine imposed for infringement of legal provisions regulating the capital market. Persons exempted by a Member State from the application of that directive are authorised to transmit, with a view to their execution, orders from clients residing or established in that Member State to investment firms that are established in another Member State.

Proceedings concerning a fine that a bank imposed on a company F for failing to comply with the prohibition on transmitting clients’ orders pertaining to investment instruments to a securities trader established in a Member State other than the Czech Republic.

С-746/22 of 16 May 2024

Detailed rules for the refund of VAT to taxable persons not established in the Member State of refund — Request for additional information made by the Member State of refund — Information to be provided within a one-month period — Discontinuation of the procedure on account of failure by the taxable person to provide additional information within that time limit — Refusal to take account of information provided for the first time in the appeal procedure — Principle of effectiveness — Principle of VAT neutrality — Principle of good administration

Key aspects of the decision in the economic range:

Territorial nature of VAT. The principles of VAT neutrality and effectiveness preclude national legislation under which a taxable person who has submitted an application for a refund of VAT is prohibited from providing, at the stage of the complaint before a second-tier tax authority, additional information. National legislation under which a tax authority must discontinue the VAT refund procedure where the taxable person has not provided, within the time limit, additional information requested by that authority.

Proceedings regarding the classification of the VAT refund procedure initiated by a company in respect of the VAT borne by it.