- Core question: Case C-515/24 examines whether Spain could introduce VAT deduction limitations at the moment of EU accession under the standstill clause in Article 176 of the VAT Directive.
- AG Kokott’s opinion: Spain’s simultaneous introduction of VAT and its limitations is permissible under the standstill clause because, before accession, Spain had no VAT system; thus, the exclusion was “provided for” in national law at accession, satisfying the directive’s requirements.
- Implications: If upheld, the opinion confirms Spain’s restrictions on entertainment expense deductions and sets a precedent allowing new member states to apply proportionate limitations at accession, preserving VAT neutrality and coherence.
Source International Tax Review
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
- Podcasts & briefing documents: VAT concepts explained through ECJ/CJEU cases on Spotify
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