- The case is about a company selling used motor vehicles to end consumers, where the tax authority corrected the VAT payable by applying a higher rate of VAT to the sales invoices.
- The company argues that the selling price indicated on the invoice already includes VAT and it cannot pass on VAT to final consumers.
- The Supreme Administrative Court of Portugal referred a question to the Court of Justice for a preliminary ruling on whether the price indicated on the invoices already includes VAT or if it is an amount to which VAT must be added.
- The Court of Justice ruled that the price indicated on the invoices must be regarded as inclusive of VAT, unless the taxable person can pass on and recover the VAT corresponding to the adjusted rate.
Source Piotr Chojnacki
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
Latest Posts in "European Union"
- CJEU Rules Non-Transactional Profit Adjustments by Principal Are VAT-Applicable Services in Arcomet Case
- Understanding VAT Implications on Transfer Pricing: Insights from Arcomet Case C-726/23
- VAT Implications on Transfer Pricing Adjustments: Insights from Acromet Towercranes Case
- CJEU Ruling: Transfer Pricing Adjustments Impact VAT in Arcomet Case (C-726/23)
- EU Court of Justice Rules Transfer Pricing Payments Subject to VAT in Arcomet Case
