Article in the EU VAT Directive
Article 90(1) of the EU VAT Directive 2006/112/EC
Questions
Does the practice of a Member State, pursuant to which the latter, relying on the ex tunc effects of the reduction applicable to the taxable amount in the event of definitive non-payment in accordance with Article 90(1) of the VAT Directive, 1 calculates the general limitation period of five years laid down by that Member State – during which period the reduction may be applied to the taxable amount – from the time of the initial supply of goods and not from the time when the debt concerned has become irrecoverable and, relying on the expiry of that limitation period, deprives the taxable person acting in good faith of his or her right to a reduction of the taxable amount in the case of debts which have become definitively irrecoverable, under circumstances in which a number of years may have elapsed between the time of the supply of goods and the time when the debt became definitively irrecoverable and in which, at the time when the debt became definitively irrecoverable, the Member State’s legislation, unlike EU law, did not permit the reduction of the taxable amount in the case of debts that had become definitively irrecoverable, comply with the fundamental principles of proportionality, fiscal neutrality and effectiveness, particularly in the light of point 63 of the Opinion of the Advocate General in Biosafe – Indústria de Reciclagens (C-8/17), paragraph 27 of the judgment in Di Maura (C-246/16) and paragraph 36 of the judgment in T-2 (C-396/16), and having regard to the fact that a Member State may not charge an amount of VAT exceeding the tax collected by the supplier of goods or services in respect of the goods or services supplied?
Source: Curia
