EU Law – VAT refund: The Court of Justice clarifies that systematic rejection by national authorities of incomplete refund applications submitted on time without first inviting applicants to complete their applications, if necessary after that date, infringe the principle of neutrality of VAT.
Upholding the infringement proceedings brought by the European Commission, by judgement of 19 November 2020, case C-371/19, Commission/Germany, the Court of Justice has declared that, by rejecting applications for a value added tax (VAT) refund which were submitted before 30 September of the calendar year following the refund period but which did not include copies of the invoices or importation documents required by the legislation of the Member State of refund under Article 10 of Council Directive 2008/9/EC, laying down detailed rules for the refund of value added tax, to taxable persons not established in the Member State of refund but established in another Member State, without first inviting applicants to complete their applications by submitting, if necessary after that date, such copies or by providing appropriate information making it possible to process said applications, the Federal Republic of Germany has, by infringing the principle of neutrality of VAT and failing to ensure the practical effect of the right to a VAT refund of taxable persons not established in the Member State of refund, failed to fulfil its obligations under Articles 170 and 171 of Council Directive 2006/112/EC on the common system of value added tax, and Article 5 of Directive 2008/9.
Court of Justice of the European Union, judgement of 19 November 2020, C-371/19, European Commission/Germany, EU:C:2020:936.
