(3) “refund period” means the period mentioned in Article 16 covered by the refund application ġ0. (1) “taxable person not established in the Member State of refund” means a taxable person within the meaning of Article 9(1) of Directive 2006/112/EC who is not established in the Member State of refund but established in the territory of another Member State ‘For the purposes of this Directive, the following definitions shall apply: (a) for the purposes of deductions pursuant to Article 168(a), in respect of the supply of goods or services, he must hold an invoice drawn up in accordance with Sections 3 to 6 of Chapter 3 of Title XI.’
‘In order to exercise the right of deduction, a taxable person must meet the following conditions: (a) the VAT due or paid in that Member State in respect of supplies to him of goods or services, carried out or to be carried out by another taxable person.’ ‘In so far as the goods and services are used for the purposes of the taxed transactions of a taxable person, the taxable person shall be entitled, in the Member State in which he carries out these transactions, to deduct the following from the VAT which he is liable to pay: ‘A right of deduction shall arise at the time the deductible tax becomes chargeable.’ (2) VAT shall become “chargeable” when the tax authority becomes entitled under the law, at a given moment, to claim the tax from the person liable to pay, even though the time of payment may be deferred.’ (1) “chargeable event” shall mean the occurrence by virtue of which the legal conditions necessary for VAT to become chargeable are fulfilled The preliminary ruling proceedings will therefore allow the Court of Justice to decide to what extent the right of deduction applies where VAT was not charged at the time the goods were originally supplied and the subsequent adjustment affects tax periods dating back more than five years.
Volkswagen sought to deduct the input VAT but the tax authority allowed the application only in respect of some of the periods claimed, rejecting it in the case of the other periods on the basis that the time limit for exercising the right (five years) had already elapsed.Ĥ. They also filed a supplementary VAT return and paid the tax to the Treasury. When, in 2010, they realised their mistake, the suppliers charged the VAT to Volkswagen and did then issue the relevant invoice stating the amount of tax payable. Both parties had wrongly assumed that the transactions in question constituted financial compensation and, as such, were not subject to VAT.ģ. The problem faced by the national court stems from the fact that, between 20, Volkswagen AG received goods from certain suppliers without VAT being included in the relevant invoices. In this case, the question raised by the referring court concerns the time limit for making that deduction.Ģ.
The Court of Justice has examined the right to deduct value added tax (VAT) many times in response to requests for preliminary rulings. (Reference for a preliminary ruling - Common system of value added tax - Deduction of tax paid to suppliers - Supply of goods not subject to VAT - Supply taxed under separate invoices - Right of deduction refused due to expiry of limitation period)ġ. Finančné riaditeľstvo Slovenskej republikyįrom the Najvyšší súd Slovenskej republiky (Supreme Court of the Slovak Republic))