Referring to our previous post HERE, the ECJ has reached a verdict.
In short, AGROBET CZ filed VAT returns in which it indicated a VAT surplus. The tax authorities questioned only a smaller proportion of the excess VAT claim, but decided to withhold payment until the full audit was closed.
Does Union law, in particular the principle of neutrality of VAT, oppose a measure taken by a Member State according to which an assessment can only be imposed and a part of the VAT deduction that is claimed is only paid after a procedure relating to the total of the taxable transactions in a given tax period has been closed?
On Curia, we read that the ECJ decided as follows (note this is an unofficial translation):
Articles 179, 183 and 273 of Council Directive 2006/112 / EC of 28 November 2006 on the common system of value added tax, read in the light of the principle of fiscal neutrality, must be interpreted as meaning that they do not preclude a tax authoritiy, which does not provide for the possibility for the tax authorities to refund VAT, before the end of a tax audit, of a surplus of VAT related to transactions which are not under audit, in so far as it cannot be established clearly, precisely and unequivocally that the VAT receivable of which the amount may be lower than that of the transactions not subject to audit, will persist, irrespective of the outcome of that control.
- Taxlive (in Dutch)
- Francisco Javier Sánchez Gallardo
- PWC Avocats
- Partial refund of excess VAT claimed (upcoming amendment to CZ tax administration act?) by Ondřej Štědrý