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ECJ – C-895/19 (A. (Exercice du droit à déduction)) – Judgment – Timing of exercising right to deduct VAT on intra-community acquisitions of goods

On March 18, 2021, the ECJ issued its decision in the case C-895/19 (A. (Exercice du droit à déduction)). The case deals with the timing of exercising right to deduct VAT on intra-community acquisitions of goods.

Context: Reference for a preliminary ruling – Indirect taxation – VAT – Directive 2006/112 / EC – Intra-Community acquisition of goods – Deduction of input tax due in respect of such an acquisition – Formal requirements – Substantive requirements – Deadline for filing the tax return – Principles of fiscal neutrality and proportionality


Article in the EU VAT Directive 

Articles 167 en 178 of the EU VAT Directive 2006/112/EC

Article 167 (Right to deduct VAT – Origin and Scope of Right of Deduction)
A right of deduction shall arise at the time the deductible tax becomes chargeable.

Article 178 (Right to deduct VAT – Rules Governing Exercise of the Right of Deduction)
In order to exercise the right of deduction, a taxable person must meet the following conditions:

  • (a) for the purposes of deductions pursuant to Article 168(a), in respect of the supply of goods or services, he must hold an invoice drawn up in accordance with Sections 3 to 6 of Chapter 3 of Title XI;
  • (b) for the purposes of deductions pursuant to Article 168(b), in respect of transactions treated as the supply of goods or services, he must comply with the formalities as laid down by each Member State;
  • (c) for the purposes of deductions pursuant to Article 168(c), in respect of the intra-Community acquisition of goods, he must set out in the VAT return provided for in Article 250 all the information needed for the amount of VAT due on his intra-Community acquisitions of goods to be calculated and he must hold an invoice drawn up in accordance with Sections 3 to 5 of Chapter 3 of Title XI;
  • (d) for the purposes of deductions pursuant to Article 168(d), in respect of transactions treated as intra-Community acquisitions of goods, he must complete the formalities as laid down by each Member State;
  • (e) for the purposes of deductions pursuant to Article 168(e), in respect of the importation of goods, he must hold an import document specifying him as
    consignee or importer, and stating the amount of VAT due or enabling that amount to be calculated;
  • (f) when required to pay VAT as a customer where Articles 194 to 197 or Article 199 apply, he must comply with the formalities as laid down by each Member State.

Facts

A Polish referral asking whether Article 167 of the VAT Directive, in conjunction with Article 178, is to be interpreted as precluding national law which makes the exercise of the right to deduct VAT in the same accounting period as that in which the tax due was payable on transactions constituting Intra-Community acquisitions of goods, subject to entry of the tax due on those transactions in the appropriate tax declaration? Whether Article 167 of the VAT Directive, in conjunction with Article 178, is to be interpreted as precluding national law which makes the exercise of the right to deduct VAT in the same accounting period as that in which the tax due was payable on transactions constituting Intra-Community acquisitions of goods, subject to entry of the tax due on those transactions in the appropriate tax declaration?


Question 

Is Article 167 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (as amended), in conjunction with Article 178 thereof, to be interpreted as precluding national legislation which makes the exercise of the right to deduct input tax in the same accounting period as that in which the tax due was payable on the transactions constituting Community acquisitions of goods subject to entry of the tax due on those transactions in the appropriate tax declaration submitted within the mandatory period (in Poland, three months) following the end of the month in which the tax liability arose in relation to the goods and services acquired?


AG Opinion

None


Decision

Articles 167 and 178 of Council Directive 2006/112 / EC of 28 November 2006 on the common system of value added tax, as amended by Council Directive 2010/45 / EU of 13 July 2010 , must be interpreted as meaning that they are opposed to national regulations under which the exercise of the right to deduct value added tax (VAT) relating to an intra-Community acquisition, during the same period taxable than that during which the VAT is due, is subject to the mention of the VAT due in the tax return filed within three months from the end of the month during which the tax obligation relating to the goods acquired took birth.


Source


Reference to the case in the EU Member States


 

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