Comments on ECJ C-680/23: Portuguese refusal to grant VAT refund when restarting activities not contrary to EU law

The Court of Justice of the European Union ruled that Portugal is not violating EU law by denying a VAT refund to Modexel after it resumed activities, stating that Modexel cannot carry over excess VAT to future periods.
Modexel, which ceased operations on February 28, 2015, owed €12,000 in VAT for the first quarter of 2015 and resumed activities on May 10, 2016, subsequently attempting to deduct this amount in its VAT return.
The court emphasized that Modexel should have applied for a VAT refund within twelve months of ceasing its activities, while also noting that the principles of equivalence and effectiveness must still be respected.