The ECJ has decided in few cases on the determination of the Taxable Amount if contracts are terminated or in case of payment cancellation fees.
Article in EU VAT Directive 2006/112/EC – Art. 90
Article 90
1. In the case of cancellation, refusal or total or partial non-payment, or where the price is reduced after the supply takes place, the taxable amount shall be reduced accordingly under conditions which shall be determined by the Member States.
2. In the case of total or partial non-payment, Member States may derogate from paragraph 1.
ECJ Cases – Decided
- C-215/94 (Mohr) – An indemnity for the abandonment of milk production is not subject to VAT
- C-384/95 (Landboden-Agrardienste) – A national compensation scheme not to harvest at least 20% does not constitute a supply of services
- C-277/05 (Société thermale d’Eugénie-Les-Bains) – Reservation for an accomodation was outside scope of VAT
- C-310/11 (Grattan) – Mail-order agent’s credit does not lead to a reduction in tax base
- C‑250/14 and C‑289/14 (Air France-KLM and Hop!Brit-Air) – The issue by an airline company of tickets for domestic flights is subject to VAT where those tickets have not been used by passengers
- C-295/17 (MEO – Serviços de Comunicações e Multimédia) – Judgment – VAT on early termination of broadband deal
- C-43/19 (Vodafone Portugal) – Termination fees are subject to VAT
- C-622/23 (RHTB) – VAT Implications in Work Contract Cancellations
ECJ Cases – Pending
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
Latest Posts in "European Union"
- ECJ C-726/23 (Arcomet Towercranes) – Judgment – Transfer Pricing Adjustment for intra-group services subject to VAT; documentation required
- Public Consultation on Tobacco taxation – excise duties for manufactured tobacco products
- ViDA Assessment Checklist: 28 key questions for evaluating vendors
- New General Court VAT case – T-569/25 (X-GmbH) – Details not yet known
- Agenda of the ECJ VAT cases – 1 Judgment, 6 AG Opinions, 2 Hearings till October 3, 2025