Comments on ECJ C-680/23: EU Court Rules on VAT Credit Carryover Post-Business Cessation

• A national law is compatible with Directive 2006/112/EC if it states that a taxpayer who has ceased their economic activity cannot carry forward VAT credit but can only request a refund within 12 months from the cessation date provided equivalence and effectiveness principles are met
• This was established by the Court of Justice of the EU in a judgment filed on December 5, 2024, concerning case C-680/23 Modexel Consultores e Servicos SA
• The case involves a company that ceased operations in February 2015 with a VAT credit declared
• In May 2016, the company resumed operations and offset the aforementioned surplus against the tax

Source: eutekne.info

See also

• ECJ VAT C-680/23 (Modexel) – Judgment – VAT Carry-Forward Prohibited After Activity Cessation

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• 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.