- 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"
- Transfer Pricing and VAT: Implications of Recent European Court of Justice Ruling
- ICS2 Implementation Delayed: Businesses Can Use ICSNI for ENS Declarations Until December 2025
- EU Advocate General: Hotels Must Split Services for VAT, Including Breakfast, Under German Law
- CJEU Decision Highlights VAT and Transfer Pricing Interplay in SC Arcomet Towercranes Case
- Understanding the Reemtsma Principle: EU VAT Reimbursements and Recent CJEU Rulings