- Legafact, a business management services provider, was not initially registered for VAT.
- After issuing an invoice, its taxable turnover exceeded the threshold for mandatory VAT registration.
- The tax authorities fined Legafact for not applying for VAT registration within seven days of reaching the threshold.
- However, the administrative court found the penalty disproportionate as Legafact was only three days late and had not engaged in fraudulent conduct.
- The CJEU stated that the VAT Directive allows for a small business scheme with a requirement for timely VAT registration, as long as it complies with effectiveness and proportionality principles in countering VAT violations.
Source BTW jurisprudentie
See also
- C-122/23 (Legafact EOOD) – Judgment – Member States may require small businesses to submit an application for VAT registration within a prescribed period
- C-183/14 (Salomie and Oltean) – Reclassification by the national tax authority of a transaction as an economic activity subject to VAT
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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