Source: All England Reporter
Publisher Citation: [2015] All ER (D) 217 (Apr)
Court: Court of Justice of the European Union (Sixth Chamber)

Judges Rodin (President of the Chamber), Borg Barthet (Rapporteur) and Levits

Judgment Dates: 23 April 2015


European Union - Value added tax - Supply of goods or services - Applicant German company providing technical and consulting services to Bulgarian company (GSTS) - GSTS under mistaken assumption that applicant not having fixed establishment in Bulgaria - GSTS therefore paying VAT due as required under Bulgarian VAT law - Bulgarian tax authorities discovering that applicant havng fixed establishment in Bulgaria and concluding that applicant liable for VAT payment - Applicant making payment and applying for refund - Tax authorities refusing refund and refusing GSTS right of deduction - Determination of person liable under EU law to pay VAT in present circumstances - Whether EU principle of fiscal neutrality precluding national legislation at issue - , arts 193, 194.

The Case

European Union Value added tax. The Court of Justice of the European Union gave a preliminary ruling deciding, among other things, that of Council Directive (EC) 2006-112 (on the common system of value added tax) should be interpreted as meaning that the only person liable to pay the VAT was the taxable person supplying services, where those services had been supplied from a fixed establishment located in the member state in which the VAT was payable.

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