ECJ: Overcharged VAT on receipt difficult to recover – implications for businesses

• The ECJ ruled that correcting VAT on receipts will be difficult to recover
• Entrepreneurs can adjust VAT declarations to recover overpaid tax
• Tax authorities can refuse refund, citing unjust enrichment
• EU Court of Justice ruling is binding in all 27 EU member states
• Tax authorities demanded higher VAT rates from entrepreneurs, then later admitted lower rates were correct
• Entrepreneurs filed for tax refunds, but tax authorities refused, arguing overpayment should be returned to consumers
• Inconsistent rulings by administrative courts led to referral to EU Court of Justice
• EU Advocate General stated entrepreneurs can correct declarations and seek refund of overpayment
• TSUE agreed that correcting sales receipts is possible, but regulation is up to individual countries
• Preventing correction of VAT owed in such situations would be unjust

Source: podatki.gazetaprawna.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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