Comments on ECJ C-83/23: Key Implications of Incorrectly Charged VAT in Cross-Border Transactions

• In the case of H GmbH v Finanzamt M (Case C-83/23), the European Court of Justice (ECJ) ruled that when one party in a transaction (either the supplier or the buyer) receives a VAT refund from the tax authorities, the other party is not entitled to claim the same refund. This situation arose after the supplier issued an invoice applying VAT in the wrong country, leading the tax office to refund the VAT to the supplier’s insolvency estate. Consequently, the buyer’s claim for a VAT refund was denied to avoid double reimbursement.
• This case emphasizes the importance of applying the correct VAT, especially in cross-border transactions. A thorough pre-accounting process helps ensure that invoices are verified for proper VAT jurisdiction before entering the accounting system. By catching errors early, businesses can avoid complications. If discrepancies are found, requesting corrected invoices promptly is key to securing potential VAT refunds.

Source vat4u

See also

• C-83/23 (H GmbH) – Judgment – No Refund of VAT wrongly charged to the buyer in case supplier initiated insolvency proceedings

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