Comments on ECJ C-680/23: Portuguese Company’s VAT Claims Denied After Resuming Business Post-Closure

The Portuguese company SA Modexel announced it would cease its economic activities from February 28, 2015, and reported a positive VAT balance of EUR 12,456.20 for the first quarter of 2015
Modexel resumed its economic activities on May 10, 2016, and in its first VAT declaration post-resumption, it deducted the previously mentioned positive VAT balance
The Portuguese Tax Authority denied the deduction of the positive VAT balance because Modexel did not request a refund within 12 months after ceasing its activities and thus could no longer claim the amount
Modexel appealed the decision and the Portuguese court sought clarification from the EU Court of Justice on the interpretation of the term next period in Article 183 of the VAT Directive 2006
The EU Court ruled that the VAT Directive 2006 does not oppose a national regulation that prevents a taxpayer who has ceased economic activities from carrying over a surplus VAT to a subsequent period and can only reclaim that amount by requesting a refund within twelve months from the date the activities ended, provided the principles of equivalence and effectiveness are respected

Source: futd.nl