VATupdate

ECJ C-585/20 (BFF Finance Iberia S.A.U. vs. ES) Questions: Late payment Directive, interest also on the VAT amount?

On 5 November 2020 the Juzgado Contencioso-Administrativo No 2 de Valladolid (Spanish Court) wishes to find out (a.o.) if according to the Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions default interest should be calculated also on the VAT due.


Articles 

Articles 4(1), 6, and 7(2) and (3) of Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions


Facts

  • Several trading companies have supplied goods and services to medical centers under the responsibility of the health department.
  • The health service has not paid the bills before the due date.
  • BFF Finance Iberia has taken over the rights from the trading companies and requested the health service for payment of: EUR 124 662.71 as principal, plus default interest and EUR 40 in recovery costs for each of the invoices not paid within the legally established deadlines.
  • The health service did not pay and BFF Finance Iberia lodged an appeal with the administrative court.

Questions

‘In the light of Articles 4(1), 6, and 7(2) and (3) of Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions:

..

How is Article 2 of the directive to be interpreted? Does the interpretation of the directive support the conclusion that the basis for calculating late-payment interest recognised in the directive includes the VAT due on the service provided, the amount of which is included in the invoice? Or is it necessary to identify and determine the time when the contractor paid the tax to the tax administrative authority?


 

Source: Curia

 

 

 

 

 

 

 

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