Comments on ECJ C-794/23: VAT Overcharge: Simplified Invoicing and Taxpayer Rights in Austria Case

• The rule does not apply if the client is a taxable person who cannot deduct the tax.
• Excess VAT charged to a final consumer is not owed by the supplier, as there is no risk of tax revenue loss.
• Only individuals who are not taxable persons can be considered final consumers.
• The case involves an Austrian company managing an amusement park that applied a higher VAT rate than required.
• Simplified invoices were issued due to the low value of transactions.
• Austrian law allows simplified invoices for amounts under 400 euros.
• The Austrian company corrected its VAT declaration after adopting the correct rate.
• The tax authority denied the correction, citing the chosen invoicing method and potential unjust enrichment.
• The European Court’s conclusions differ from the Austrian tax authority.
• Article 203 of Directive 2006/112/EC states VAT is owed by anyone who indicates it on an invoice.
• The rule aims to prevent tax revenue loss and applies when there is a risk of deduction by the invoice recipient.
• A taxable person indicating an incorrect VAT rate is not liable if there is no risk of revenue loss.

Source: eutekne.info

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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