- CJEU Ruling on VAT Services: The Court of Justice of the European Union (CJEU) ruled that the activities performed by Határ Diszkont Kft., which include refunding VAT to non-EU buyers, constitute a service for VAT purposes, separate from the sale of goods.
- Administration Fee Classification: Határ charges a 15% administration fee on the refunded VAT, which is categorized as a fee for exempt services. However, the Hungarian tax authorities argued that this service does not qualify for any exemption under EU VAT directives.
- Implications for VAT Treatment: The CJEU determined that neither Article 146(1)(e) nor Article 135(1)(d) of the VAT Directive applies to Határ’s service, and it is contrary to EU law for the Hungarian tax authorities to treat the administration costs as net amounts excluding VAT, especially when the VAT cannot be retrospectively recovered from the exempt purchasers.
Source: taxlive.nl
See also
- Briefing document & Podcast: ECJ VAT C-427/23 VAT Refunds for Non-EU Customers: Taxable Services or Exempt? – VATupdate
- ECJ C-427/23 (Határ Diszkont) – Managing VAT refund files is an independent supply subject to VAT, not exempted from VAT – VATupdate
- Roadtrip through ECJ Cases – Taxable transaction, Place of Supply, VAT rate, Exemption, Invoicing – ”Composite supplies”
- Exemption – Financial transactions – deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments (Art. 135(1)(d))
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
