- No VAT Liability for Incorrect Invoices: Advocate General Kokott concluded that P GmbH is not liable for VAT on incorrect invoices issued to a non-taxable person, regardless of other incorrect invoices issued to taxable persons.
- Overpaid VAT Refund Request: P GmbH operates an indoor playground where entrance fees are subject to a reduced VAT rate of 13%. However, it mistakenly applied the standard VAT rate of 20% and sought a refund for the overpaid VAT.
- Austrian Tax Authorities’ Position: The Austrian tax authorities denied P GmbH’s right to a refund, leading to a referral to the Court of Justice of the European Union (CJEU) for a preliminary ruling.
- Risk of Tax Revenue Loss: The CJEU ruled that P GmbH does not owe VAT on incorrectly invoiced amounts if the recipients are final consumers who cannot deduct input tax, provided there is no significant risk of tax revenue loss.
- Further Court Inquiries: The Austrian court found that, while the majority of P GmbH’s services were likely for private use, a small percentage of turnover could still present a risk of tax revenue loss, prompting additional questions for a preliminary ruling regarding how to assess this risk.
Source Taxlive
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
