The Sofia Appellate Court awarded claimant compensation of nearly BGN 1 million for damages caused by infringement of EU VAT law. A Belgian company deducted Bulgarian VAT credit through its Bulgarian VAT number. Tax authorities denied the company the right to VAT credit, claiming that the company did not use the purchased goods for supplies with a place of supply in Bulgaria; and therefore the company acted as a final consumer of the goods. Sofia Appellate Court repealed the previous decision and ruled in favour of the claimant. According to the decision of the Sofia Appellate Court, the Supreme Administrative Court’s interpretation manifestly infringed EU Directive 2006/112/EC and binding CJEU case-law. As such, the compensation awarded includes the legal costs for conducting the proceedings for the appeal.
Source: cms-lawnow.com
