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VAT

Swedish Tax Agency can postpone VAT refund to investigate further

In its judgment of 14 May 2020 in Case C ‑ 446/18, Agrobet, the European Court of Justice has examined the interpretation of Articles 179, 183 and 273 of Directive 2006/112 / (VAT Directive).

Agrobet filed two VAT returns with excess VAT. The tax authorities of the Czech Republic initiated inspections and withheld the entire excess tax. The company brought an action and stated that the tax authority’s doubts concerned only a small part of the excess VAT. Therefore, the company considered the withholding of the entire excess tax for several tax periods disproportionately burdensome. The company requested repayment of the undisputed parts. The authority rejected the request. That assessment was also upheld in the national court.

The European Court of Justice has ruled that Articles 179, 183 and 273 of the VAT Directive do not preclude national legislation which does not allow the tax authority, before the end of a tax audit procedure of a VAT return with an excess amount, to reimburse the part not covered by the control. initial. This applies provided that it is not possible to establish that excess VAT remains regardless of the outcome of the control. It is for the national court to determine whether the tax authorities have identified or should have identified a non-disputed part of the excess VAT amount before the end of the review.

The block expires if the Swedish Tax Agency does not take any control measure within one month

Source: skatteverket.se

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