- EU Court Ruling on VAT Liability: The EU Court of Justice ruled that P GmbH, which operates an indoor playground, is not liable for VAT on incorrect invoices issued to a non-taxable person. The court emphasized that the issuance of incorrect invoices to taxable persons is irrelevant to this decision.
- Incorrect VAT Rate Application: Despite the entrance fees for the playground being subject to a reduced VAT rate of 13%, P GmbH mistakenly applied the normal rate of 20%. The Austrian tax authority denied P GmbH’s request for a refund of the excess VAT paid.
- Conditions for VAT Assessment: The court concluded that there is no obligation for P GmbH to pay the incorrectly charged VAT, as long as the risk of tax revenue loss is negligible, given that the customers are final consumers without the right to deduct input tax. The Austrian court raised concerns about potential tax revenue loss based on estimated taxable turnover, leading to further prejudicial questions to the EU Court regarding the assessment and estimation methods used by the tax authority.
Source: taxlive.nl
See also
- ECJ C-794/23 (Finanzamt Österreich) – Judgment – Taxpayer not liable for incorrectly charged VAT to non-taxables – VATupdate
- Briefing document & Podcast: ECJ VAT C-794/23: Indoor playground operator does not owe VAT for incorrect invoices – VATupdate
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
