Comments on ECJ C-377/23: One hundred or one hundred with an understated rate on the invoice for the consumer?

• The case is about a company selling used motor vehicles to end consumers, where the tax authority corrected the VAT payable by applying a higher rate of VAT to the sales invoices.
• The company argues that the selling price indicated on the invoice already includes VAT and it cannot pass on VAT to final consumers.
• The Supreme Administrative Court of Portugal referred a question to the Court of Justice for a preliminary ruling on whether the price indicated on the invoices already includes VAT or if it is an amount to which VAT must be added.
• The Court of Justice ruled that the price indicated on the invoices must be regarded as inclusive of VAT, unless the taxable person can pass on and recover the VAT corresponding to the adjusted rate.

Source Piotr Chojnacki

See also

• C-377/23 (Sancra) – Order – VAT assumed to be included in wrongly 0% rated invoice

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