Judgment of the E.C.J., 28/10/2021, X-Beteiligungsgesellschaft mbH, c-324/20.
Businesses act as tax collectors on behalf of the government: they must collect VAT from their customers and then pay it to the Treasury.
VAT is normally due at the time the supply of goods or services takes place.
However, the exact moment when a transaction is carried out is not always easy to determine, especially when it takes place over a long period of time (e.g. a construction site) or on a recurrent and continuous basis (e.g. internet subscription, gas supply, etc.). Therefore, when the transaction gives rise to successive breakdowns or payments, the Directive shifts the moment when VAT becomes chargeable to the end of the periods to which these breakdowns or payments relate.