The ECJ issued the preliminary ruling in the case C-392/24 (PPC Renewables Romania).
Context: Administrative proceedings brought by PPC Renewables Romania SRL (the ‘applicant’), seeking, in essence, an order that the defendants pay compensation for damage suffered as a result of the introduction of a tax obligation imposed on certain electricity producers
Articles in the EU VAT Directive
Article 401 of Directive 2006/112
Article 401
Without prejudice to other provisions of Community law, this Directive shall not prevent a Member State from maintaining or introducing taxes on insurance contracts, taxes on betting and gambling, excise duties, stamp duties or, more generally, any taxes, duties or charges which cannot be characterised as turnover taxes, provided that the collecting of those taxes, duties or charges does not give rise, in trade between Member States, to formalities connected with the crossing of frontiers.
Facts & Background
- The case involves measures taken in Romania to protect final consumers by capping electricity prices and compensating suppliers for cost differences.
- Additional tax obligations were introduced for electricity and natural gas producers.
- The applicant, a commercial company operating in the electricity and natural gas market, brought an action seeking compensation for the damage caused by the payment of a levy imposed on electricity producers.
- The applicant argues that the levy infringes several provisions of EU law. The referring court, the Curtea d’Appel București, has requested the Court of Justice for a preliminary ruling on the matter.
Questions
- According to the interpretation of Article 2(1) and (2) and Article 4(2) of [Regulation] 2021/1119, read in conjunction with Article 191(2) TFEU, which
governs the essential nature of the transition of Member States to an energy system based on renewable sources and the importance of Community policy regarding the environment, does EU law preclude the Romanian State from imposing an additional tax obligation on producers of electricity from renewable sources, such as the levy payable to the Energy Transition Fund governed by Government Emergency Order No 27/2022? - According to the interpretation of Article 3(1), (3) and (4) of Directive 2018/2001, which governs the binding European Union objective of guaranteeing a share of energy from renewable sources of at least 32% by 2030 and the obligation of the Member States to ensure that those share targets are achieved, does EU law preclude a Member State from imposing an additional tax obligation on producers of electricity from renewable sources, such as the levy payable to the Energy Transition Fund governed by Government Emergency Order No 27/2022?
- According to the interpretation of Article 3(1) and (4), Article 9(2) and Article 58(b), (c) and (d) of Directive 2019/944 and Article 3(b), (f), (g), (j) and
(n) of Regulation 2019/943, read in conjunction with Article 101(1) TFEU, on the basis of which Member States must ensure a level playing field and non-discriminatory conditions for electricity producers, does EU law preclude a Member State from creating an additional tax liability, such as the levy payable to the Energy Transition Fund governed by Government Emergency Order No 27/2022, solely for certain categories of electricity producers, to the exclusion of other categories of producers not required to pay the levy? - According to the interpretation of Article 107(1) and Article 108(3) TFEU, does EU law preclude the imposition of a tax obligation, such as the levy payable to the Energy Transition Fund governed by Government Emergency Order No 27/2022, which exempts certain electricity producers from payment of the levy, thereby constituting State aid granted to the exempt parties, subject to the obligation to give notification?
- According to the interpretation of Article 3(a), (b), (h) and (p) and Article 10(1), (4) and (5) of Regulation No 2019/943, read in conjunction with recitals 22 and 23 of the regulation, of Article 5(1), (3) and (4) of Directive 2019/944 and of Article 8 of Regulation 2022/1854, which governs the principles relating to price formation on the wholesale energy market, does EU law preclude a Member State from imposing an additional tax obligation such as the levy on the revenue of electricity producers? According to the interpretation of those provisions, may the levy be regarded as proportionate if it does not take account of the actual operating costs of electricity producers?
- According to the interpretation of Article 5(4) of Directive 2019/944, read in conjunction with Articles 49 and 56 and Article 63(1) TFEU, does EU law preclude the Romanian State from imposing an additional tax obligation on producers of electricity from renewable sources, such as the levy payable to the Energy Transition Fund governed by Government Emergency Order No 27/2022, in the absence of clear justification and in the absence of final impact on consumers?
- According to the interpretation of Article 401 of Directive 2006/112, according to which Member States may not introduce turnover taxes or duties, does EU law preclude a Member State from imposing an additional tax obligation on electricity producers, such as the levy payable to the Energy Transition Fund governed by Government Emergency Order No 27/2022?
Similar ECJ Cases
- Judgment of 6 October 1982, Cilfit and Others, 283/81, EU:C:1982:335;
- judgment of 12 April 1994, Halliburton Services, C-1/93, EU:C:1994:127;
- judgment of 7 September 2006, Marrosu and Sardino, C-53/04, EU:C:2006:517;
- judgment of 16 February 2012, Eon Aset Menidjmunt, C-118/11, EU:C:2012:97;
- judgment of 27 April 2006, Solleveld and van den Hout-van Eijnsbergen, C-443/04 and C-444/04, EU:C:2006:257
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