Recent ECJ/General Court VAT Jurisprudence and Implications for EU Compliance (January 2026)

Podcast

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

Executive Summary

This briefing document provides an overview of significant developments in EU VAT and Customs law, drawing from recent ECJ and General Court judgments, Advocate General (AG) opinions, and related commentary. Key themes include the treatment of transfer pricing adjustments for VAT purposes, conditions for VAT deductions and exemptions, customs valuation principles, and the scope of VAT simplification rules. The sources highlight an active period of jurisprudence, shaping interpretation and application across the EU. A prominent resource for staying informed on these complex matters is VATupdate.com, described as an “essential” hub for “clear, timely, and expertly curated insights.”

I. Major ECJ Judgments & Orders

Several recent rulings from the European Court of Justice (ECJ) clarify crucial aspects of VAT compliance, deductions, and exemptions:

VAT Compliance and Deductions (ECJ C-475/24 – Fashion TV RO and Maestro): This Order clarifies the responsibilities of national courts regarding VAT deductions. It states that “National courts must verify VAT compliance for deductions and may examine evidence.” Related commentary further specifies that “Tax courts can use evidence from dismissed criminal cases for VAT deductions, maintaining defense rights.” This indicates a broad approach to evidence admissibility in tax proceedings, balanced with taxpayer rights.
Customs Valuation – Lowest Acceptable Price (ECJ C-72/24 & 73/24 – Keladis): This Judgment addresses the acceptability of using the Lowest Acceptable Price in customs valuation, providing important guidance for import duties.
Restrictions on VAT Exemptions (ECJ VAT C-379/24 & C-380/24 – Agrupació de Neteja Sanitaria): A critical judgment that “disallows restrictions ensuring legal certainty for exemptions.” This ruling emphasizes that formal requirements should not unduly hinder the application of VAT exemptions where substantive conditions are met. Comments reiterate this principle, noting that the judgment “disallows restrictions ensuring legal certainty for exemptions.”

II. Advocate General Opinions: Focus on Transfer Pricing

Advocate General (AG) Opinions offer preliminary insights into the ECJ’s potential stance. The most extensively commented AG Opinion relates to transfer pricing adjustments:

VAT Treatment of Intra-Group Transfer Pricing Adjustments (ECJ C-603/24 – Stellantis Portugal): AG Kokott’s Opinion posits that “VAT Adjustments in Intra-Group Transfer Pricing Not Separate Supplies.” This opinion, which is heavily discussed across multiple comments, suggests that such adjustments are primarily “VAT Price Corrections for Previous Sales, Not Services.”
The core idea is that “TP Adjustments Affect VAT Only if They Change Consideration, Not Just Profit Allocation” and “Affect VAT Only if They Alter Agreed Transaction Price Between Parties.”
This has significant implications for multinational groups, particularly regarding “VAT Implications of Transfer Pricing Adjustments in Intragroup Transactions” and “VAT Treatment of Transfer Pricing Adjustments After Arcomet and Stellantis Cases.” The opinion indicates that they are “likely subject to VAT compliance” if they indeed modify the price of a previous supply.

III. Key Thematic Developments & Commentary on Cases

Beyond specific judgments, several recurring themes and commentaries provide deeper understanding of current EU VAT priorities:

VAT Deductions and Compliance:

Reliability of Invoices: “Hungarian Tax Authorities Cannot Deny VAT Deduction Solely for Unreliable Invoices” (ECJ Case T-363/25), reinforcing the principle that formal errors should not automatically lead to deduction denial.
Supplier VAT Number Revocation: Comments on “ECJ C-465/25: Can Businesses Recover VAT if Supplier’s VAT Number Is Revoked?” suggest ongoing discussion on this complex issue affecting input VAT recovery.

VAT Exemptions:

Formal Errors vs. Substantive Conditions: The principle that “CJEU Confirms VAT Exemption Cannot Be Denied for Formal Errors if Substantive Conditions Are Met” is highlighted across several contexts, including “Limits on Denying VAT Exemption for Intra-Community Supplies” (ECJ Case C-639/24) and evidencing transport after Flo Veneer.
Export Exemption: “Objective Criteria Prevail Over Supplier’s Documentation Errors” for VAT Export Exemption (ECJ Case C-602/24).
Credit Intermediation: “VAT exemption for credit intermediation applies when the intermediary searches for and recruits customers” (GC T-657/24).
Cost-Sharing Groups: “ECJ Expands VAT Exemption for Cost-Sharing Groups: Key Impacts for Spain, Germany, Netherlands.”
Specific National Exemptions: “Denmark Defies ECJ, Maintains VAT Exemption for Bridge as Cultural Activity,” indicating potential conflicts between national interpretations and EU law. Germany also discusses “VAT Treatment of Persistently Loss-Making Institutions Receiving Public Grants.”

Joint VAT Liability:

Scope of Article 205: “Joint VAT Liability Applies Even After Supplier Insolvency, Clarifies Article 205 Scope” (ECJ Case C-121/24). This ruling further clarifies “Ruling on Joint VAT Liability When Main Debtor Loses Legal Status: Key Issues Analyzed,” emphasizing the robustness of joint liability provisions.

Supply Chain Simplification (Triangular Transactions):

Expanded Scope: The “EU Court Confirms VAT Simplification Applies to Four-Party Supply Chains Across Member States” (ECJ Case T-646/24). This expansion means “Triangular VAT Simplification Applies to Four-Party Chains if Anti-Fraud Conditions Are Met,” broadening the practical application of these rules.

Customs Valuation:

Provisional Prices: “Customs Valuation for Imports with Provisional Prices: Tauritus Case” (ECJ Case C-782/23) is a key development, leading to discussions on “Mitigating Customs Valuation Risks: Managing Price Adjustments and Compliance After the Tauritus Ruling.”
Tariff Quotas: “Article 173(3) UCC Does Not Allow Retroactive Access to Exhausted Tariff Quotas” (ECJ Customs T‑177/25).

Supplier Identification and VAT Liability:

“ECJ Rules VAT Liability Rests with Actual Supplier, Not Designated Partner or Partnership Structure” (ECJ C-796/23), confirming the substantive reality over formal arrangements.

IV. New ECJ/General Court Cases Filed

A number of new cases have been lodged, for which details are not yet available:

ECJ VAT case T-53/26 (Central Europe Mark)
ECJ VAT Case: C-884/25 (Enel Green Power România)
New General Court VAT case – C-903/25 (Grotta Nuova)
New General Court VAT case – C-914/25 (Modelo Continente Hipermercados)
New General Court VAT Case: T-915/25 (Fundacja K.)

These cases indicate a continuing flow of important VAT litigation that will shape future interpretations.

V. Other Notable Developments

Country-Specific Updates:Czech Republic: Clarifies VAT Rules for Real Estate effective July 2025, aligning with EU Law.
Netherlands: Specific guidance on VAT Exemption for Mediation Services in Share Transactions.
Resources & Events:New Book: “CJEU – Recent Developments in Value Added Tax 2024” offers a comprehensive overview.
Conferences: Vienna University is hosting a conference on “Court of Justice of the European Union: Recent VAT Case Law.”
Digital Platforms: The ECJ/General Court continues to enhance accessibility with the “New InfoCuria case-law database and search tool” and “Curia Web TV: the Court’s new audiovisual platform.”
VATupdate.com: Positioned as a crucial resource, stating, “For anyone who needs to make informed decisions based on EU VAT case law, VATupdate.com isn’t just useful—it’s essential.” The platform now boasts “1094 ECJ VAT Cases are now available.”

Conclusion

The period under review demonstrates the ECJ’s ongoing commitment to refining EU VAT and Customs law, with a particular focus on the practical application of principles related to deductions, exemptions, and complex intra-group transactions like transfer pricing. Businesses and tax professionals must stay abreast of these developments, leveraging resources like VATupdate.com, to ensure compliance and effective tax planning. The volume of new cases and commentary signals a dynamic legal landscape that requires continuous monitoring.

Overviews

Judgments (Order)

AG Opinion