- EU Member States must transpose the VAT Directive into national legislation
- ECJ rulings on VAT Directive can impact taxable persons
- Recent ECJ decision in Germany states no additional VAT liability for service providers who incorrectly overstate VAT on invoices to end consumers
- ECJ decision in Finanzamt Österreich case
- Plaintiff issued invoices with incorrect VAT amount, but correction was not possible for everyday service providers
- Plaintiff appealed and ECJ ruled they were not liable for overstated VAT as invoices were issued to end consumers who couldn’t deduct input VAT
- Purpose of VAT Directive is to prevent tax revenue losses from unjustified input VAT deductions
Source: riskandcompliance.freshfields.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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