News

03.01.2025

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

December

С-3/24 of 5 December 2024
Prevention of the use of the financial system for the purposes of money laundering or terrorist financing – Obliged entity – Accounting services provided, on an ancillary basis, to companies related to the entity providing them - Concept of ‘external accountants’
Key aspects of the decision in the economic range:
Prevention of the use of the financial system for the purposes of money laundering and terrorist financing. The concept of ‘external accountants’ refers to natural or legal persons whose professional activity consists in independently providing accounting services, such as the preparation, keeping or auditing of accounts, to third parties. By contrast, a legal person that keeps the accounts of companies related to it, with a view to pooling resources, does not fall within the scope of that concept.
Proceedings between M and Tax Authority VID concerning a fine for infringements of the national provisions on the prevention of money laundering and terrorist financing.
С-606/23 of 5 December 2024
Competition - Vertical agreements – Restriction ‘by effect’ – Agreement establishing restrictions in respect of car warranties – Obligation for the competition authority to demonstrate anticompetitive effects – Actual effects and potential effects
Key aspects of the decision in the economic range:
Agreements, decisions and concerted practices. In accordance with Article 101(1) TFEU, for the purposes of determining the existence of a prohibited agreement establishing restrictions in respect of car warranties which, in order for the car’s warranty to remain valid, oblige or induce car owners to carry out the repair and maintenance of that car solely at authorised representatives of the car’s manufacturer and to use the original spare parts of that manufacturer in its servicing, must the competition authority demonstrate the existence of actual and real restrictive effects on competition.
Dispute concerning a fine imposed for the conclusion of a vertical agreement establishing restrictions in respect of car warranties.
С-680/23 of 5 December 2024
Common system of value added tax – Rules governing the exercise of the right of deduction – Carrying forward excess VAT – Refund of excess VAT – Cessation of economic activity – Concept of ‘following period’
Key aspects of the decision in the economic range:
National legislation which provides that, where a taxable person ceases economic activity, that person may not carry excess VAT forward to a following period and may recover that amount only by requesting a refund within 12 months from the date on which that activity ceased, provided that the principles of equivalence and effectiveness are observed.
Proceedings concerning a request to carry forward, after the resumption of an economic activity, excess value added tax that had arisen as at the time of cessation of the same economic activity previously carried out.
С-330/23 of 12 December 2024
Unfair terms in consumer contracts — Mortgage loan agreement — Term providing for a variable interest rate — Reference index based on the annual percentage rates of charge (APRC) of mortgage loans granted by savings banks — Official index established by a published administrative act — Information contained in the preamble to that act — Check relating to the requirement of transparency — Assessment of the unfair nature of the term — Principle of effectiveness
Key aspects of the decision in the economic range:
Consumer protection. The requirement of transparency is complied with, when a mortgage loan agreement is concluded as regards the term of that agreement providing for the periodic adjustment of the interest rate in relation to the value of an official index established by an administrative act, which contains the definition of that index, merely because that act and the previous values of that index were published in the official journal. The fact that APRCs contain elements arising from terms which may subsequently be found to be unfair means that the term adjusting the interest rate of the agreement must be regarded as unfair and therefore unenforceable against the consumer.
Proceedings concerning the validity of the term providing for periodic review of the interest rate for a mortgage loan agreement.
С-331/23 of 12 December 2024
Common system of value added tax — Joint and several liability for tax debts owed by a third party — Conditions and scope of liability — Fight against VAT fraud — Joint and several liability for the payment of VAT which does not allow an assessment to be made on the basis of the contribution of each taxable person in the tax evasion — Principle of proportionality — Charter of Fundamental Rights of the European Union — Principle ne bis in idem — Criteria for application — Facts relating to different tax years against which administrative or criminal proceedings are brought — Continuing offence with unity of purpose — Facts not identical — Concept of „joint and several liability “
Key aspects of the decision in the economic range:
The principle of proportionality as not precluding a national provision which, in order to ensure the collection of VAT, provides for the strict joint and several liability of a taxable person other than the person who would normally be liable for that tax without, however, the court having jurisdiction being able to exercise a discretion on the basis of the contribution of the various persons involved in tax evasion. Criminal penalties and administrative penalties of a criminal nature, resulting from different proceedings, to be combined in respect of offences which are of the same nature yet occurred over consecutive tax years, which are the subject of administrative proceedings of a criminal nature for one tax year and criminal proceedings for another tax year.. Extended liability with a view to the effective combating of VAT fraud. Proportionality of such liability. Principle of neutrality. Principle ne bis in idem. Concept of „joint and several liability “.
Proceedings, concerning the joint and several liability for the payment of value added tax.
С-436/23 of 12 December 2024
Tax on company profits — National legislation establishing a fairness tax — National decision annulling that legislation — Tax not payable by a non-resident company with a permanent establishment in the Member State — Tax payable by a subsidiary of a non-resident company — Choice of legal form — Comparability of situations
Key aspects of the decision in the economic range:
Direct taxation. Legislation of a Member State under which a resident subsidiary of a non-resident company is subject to a ‘fairness tax’ on the distribution of profits which, as a result of the use of certain tax advantages provided for by the national tax system, are not included in the final taxable profits of that subsidiary, whereas a non-resident company pursuing an economic activity in that Member State is not subject to that tax.
Proceedings, concerning the consequences of national legislation which imposes a fairness tax on the resident subsidiaries of non-resident companies.
С-527/23 of 12 December 2024
Common system of value added tax — Right to deduct VAT — Purchase of administrative services provided within the same group of companies — Refusal of the right of deduction
Key aspects of the decision in the economic range:
National legislation or a national practice under which the tax authority refuses the right to deduct input VAT paid by a taxable person when acquiring services from other taxable persons belonging to the same group of companies on the grounds that those services were supplied at the same time to other companies in that group and that their purchase was not necessary or appropriate, where it is established that those services are used by that taxable person for the purposes of its own taxed output transactions.
Proceedings, concerning the refusal, by an authority, of the right to deduct input value added tax paid in respect of the purchase of administrative services provided within the same group of companies.
С-725/23 of 12 December 2024
Combating late payment in commercial transactions – Transactions between undertakings – Commercial lease agreement – Re-invoicing of rental charges and costs associated with the rent - Concept of ‘amount due’
Key aspects of the decision in the economic range:
Compensation of creditors for the recovery costs incurred due to late payment. The concept of ‘amount due’ referred to therein covers, in addition to the amount which the debtor is required to pay in return for the main service provided to him or her by the creditor in performance of the contract concluded between them, the sums which the debtor has undertaken, under that contract, to reimburse to the creditor in respect of the costs incurred by the latter and connected with the performance of that contract.
Proceedings concerning the recovery of invoices relating to costs associated with the occupation of a commercial property which were borne by M. but which had been contractually charged to R.
С-295/23 of 19 December 2024
Freedom of establishment — Establishing the applicable freedom — Requirements relating to holding shares in a firm — A purely financial investor’s holding in a law firm — Revocation of that law firm’s registration with the professional body on account of that holding — Restriction on freedom of establishment and on the free movement of capital — Justifications based on protecting the independence of lawyers and recipients of legal services — Proportionality
Key aspects of the decision in the economic range:
Services in the internal market. Free movement of capital. A financial investment involves a certain degree of influence over the management of a law firm. National legislation which, under penalty of the law firm concerned having its registration with the bar association revoked, prohibits shares in that firm from being transferred to a purely financial investor who does not intend to exercise, in that firm, a professional activity covered by that legislation.
Proceedings between HR, on the one hand, and the Munich Bar Association, on the other, concerning the latter’s decision to revoke HR’s registration with the bar association.
С-369/23 of 19 December 2024
Charter of Fundamental Rights of the European Union – Access to an independent and impartial tribunal – Liability of a Member State for damage caused to individuals by an infringement of EU law – Infringement by a national court adjudicating at last instance in relation to value added tax – Jurisdiction of a court adjudicating at last instance while having the capacity of defendant in the dispute – Composition of the adjudicating panel - Concept of ‘independence’
Key aspects of the decision in the economic range:
Effective legal protection in the fields covered by EU law. National legislation under which a court hears at last instance, in the context of an appeal on a point of law, a case, in which that court has the status of defendant, relating to the liability of the State for an alleged infringement of EU law on account of a judgment delivered by that court. Effective judicial protection. Independent and impartial court. Objective test of impartiality
Proceedings concerning compensation for the damage allegedly suffered by the B as a result of an infringement of EU law.
С-573/22 of 19 December 2024
Common system of value added tax – Derogation – Scope – Activities of a public radio and television body financed by a compulsory fee paid by the owners of devices capable of receiving radio and television broadcasts
Key aspects of the decision in the economic range:
Derogation from the common VAT rules. The VAT Directive must be interpreted as not precluding a Member State which, on 1 January 1978, imposed VAT on public broadcasting activities financed by a compulsory statutory fee paid by any person who owned a radio or television set, from continuing to tax those activities where the legislation relating to that fee was amended after that date.
Proceedings concerning an application for reimbursement of value added tax on the fee payable by owners of devices capable of receiving audio-visual broadcasts.
Joined Cases С-717/22 and C-372/23 of 19 December 2024
Customs union — Provision of information to the customs authorities — Failure to comply with the customs legislation — Effective, proportionate and dissuasive penalties — Confiscation of crime-related proceeds, instrumentalities and property — National provision providing for the imposition of a fine of between 100% and 200% of the customs value of the goods and confiscation thereof irrespective of the owner — Concepts of „confiscation“ and „Failure to comply with the customs legislation“
Key aspects of the decision in the economic range:
Customs union and free movement of goods. A national provision which makes it possible to establish a failure to comply with customs legislation on the sole ground of negligence, consisting of failure to use the prescribed form for declaring the goods being transported. A national provision which, for failure to comply with the customs legislation, provides not only for the imposition of a fine but also for the confiscation of the goods in respect of which there has been a failure to comply.
Concepts of „confiscation“ and „Failure to comply with the customs legislation“
Proceedings, concerning the decision to impose an administrative penalty for smuggling and to confiscate the goods, which were smuggled.

November

С-622/23 of 28 November 2024
Value added tax — Taxable transactions — Contract for services for the carrying out of a building project — Termination of the contract by the customer — Obligation to pay the total amount agreed after deduction of the costs saved by the supplier — Taxable amount
Key aspects of the decision in the economic range:
An amount contractually due following the termination, by the recipient of a supply of services, of a contract validly concluded for that supply of services, subject to VAT, which the supplier had begun providing and which it was prepared to complete, must be regarded as constituting the remuneration for a supply of services for consideration, within the meaning of the VAT Directive. Concept of “remuneration”.
A dispute concerning the imposition of value added tax (VAT) on the amount contractually due following the termination, by the customer of a building project the carrying out of which had already begun and which the construction undertaking was prepared to complete.

October 2023 g.

С-117/23 of 18 October 2023
Unfair clauses in consumer contracts - Clear and understandable text of a contract clause - Bank credit agreement denominated in a foreign currency - Clause whereby the currency risk is transferred entirely to the burden of the consumer - Benefit arising in favor of the bank, which is not specifically agreed and results from the conversion of the loan amount from the settlement currency to the payment currency - Consequences of declaring the clause unfair
Key aspects of the decision in the economic range:
Assessment of unfairness of contractual clauses. Unfair are the clauses in a loan agreement, by virtue of which the borrowed amount is denominated in a foreign currency and the bank first transfers it into that currency to a blocked account, and then converts it into the national or reserve currency and credits the borrower's current account with it when, as a result of such clauses, on the one hand, the currency risk in the event of a significant increase in the foreign currency is transferred entirely to the consumer, and on the other hand, the credit institution receives, to the detriment of the consumer, a tax related to the conditions for converting the loan.
Proceedings between borrowers and Eu, as a lender, a party, regarding the alleged unfairness of certain clauses of a bank loan agreement denominated in foreign currency, as a result of which the currency risk is assigned to the borrowers and Eu is granted a benefit that was not specifically agreed upon when concluding this agreement.