Case C-271/12

Petroma Transports SA and Others

v

État belge

(Request for a preliminary ruling from the Cour d’appel de Mons)

‛Taxation — Value added tax — Sixth Directive 77/388/EEC — Right to deduct input tax — Obligations of the taxable person — Possession of improper or inaccurate invoices — Omission of mandatory particulars — Refusal of the right to deduct — Evidence subsequent to the occurrence of the transactions invoiced — Correcting invoices — Right to refund of VAT — Principle of neutrality’

Summary — Judgment of the Court (Second Chamber), 8 May 2013

1. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Deduction of input tax — Obligations of the taxable person — Holding of an invoice containing certain information — National legislation refusing the right to deduct due to errors on an invoice in the event of rectification of the invoice after the decision of the authority — Whether permissible

   (Council Directive 77/388, Arts 17(2), 18(1)(a) and 22(3)(b) and (c) and (8))

2. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — National legislation refusing the right to deduct due to errors on an invoice and refund of the tax paid — Compliance with the principle of fiscal neutrality

   (Council Directive 77/388, Art. 22)

1.  The provisions of Sixth Council Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 94/5, must be interpreted as not precluding national legislation under which the right to deduct value added tax may be refused to taxable persons who are recipients of services and are in possession of invoices which are incomplete, even if those invoices are supplemented by the provision of information seeking to prove the occurrence, nature and amount of the transactions invoiced after such a refusal decision was adopted.

   Although the common system of value added tax does not prohibit the correction of incorrect invoices where all of the material conditions required in order to benefit from the right to deduct value added tax are satisfied, the benefit of that right can, however, be refused where the taxable person has submitted a corrected invoice to the authority concerned after the decision of that authority was adopted, preventing the correct collection of the tax and supervision thereof.

   (see paras 34-36, operative part 1)

2.  The principle of fiscal neutrality does not preclude the tax authority from refusing to refund the value added tax paid by a company providing services, in the case where the exercise of the right to deduct the value added tax levied on those services has been denied to the companies receiving those services by reason of the irregularities confirmed in the invoices issued by that service-providing company. Provided that is has been confirmed that the services subject to value added tax has in fact been supplied, the tax relating to those transactions is due and is correctly payable to the tax authority. Any other interpretation would be liable to encourage situations that may prevent the correct collection of value added tax, which Article 22 of the Sixth Directive on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 94/5, seeks specifically to avoid.

   (see paras 43, 44, operative part 2)

Case C-271/12

Petroma Transports SA and Others

v

État belge

(Request for a preliminary ruling from the Cour d’appel de Mons)

‛Taxation — Value added tax — Sixth Directive 77/388/EEC — Right to deduct input tax — Obligations of the taxable person — Possession of improper or inaccurate invoices — Omission of mandatory particulars — Refusal of the right to deduct — Evidence subsequent to the occurrence of the transactions invoiced — Correcting invoices — Right to refund of VAT — Principle of neutrality’

Summary — Judgment of the Court (Second Chamber), 8 May 2013

1. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Deduction of input tax — Obligations of the taxable person — Holding of an invoice containing certain information — National legislation refusing the right to deduct due to errors on an invoice in the event of rectification of the invoice after the decision of the authority — Whether permissible

   (Council Directive 77/388, Arts 17(2), 18(1)(a) and 22(3)(b) and (c) and (8))

2. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — National legislation refusing the right to deduct due to errors on an invoice and refund of the tax paid — Compliance with the principle of fiscal neutrality

   (Council Directive 77/388, Art. 22)

1.  The provisions of Sixth Council Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 94/5, must be interpreted as not precluding national legislation under which the right to deduct value added tax may be refused to taxable persons who are recipients of services and are in possession of invoices which are incomplete, even if those invoices are supplemented by the provision of information seeking to prove the occurrence, nature and amount of the transactions invoiced after such a refusal decision was adopted.

   Although the common system of value added tax does not prohibit the correction of incorrect invoices where all of the material conditions required in order to benefit from the right to deduct value added tax are satisfied, the benefit of that right can, however, be refused where the taxable person has submitted a corrected invoice to the authority concerned after the decision of that authority was adopted, preventing the correct collection of the tax and supervision thereof.

   (see paras 34-36, operative part 1)

2.  The principle of fiscal neutrality does not preclude the tax authority from refusing to refund the value added tax paid by a company providing services, in the case where the exercise of the right to deduct the value added tax levied on those services has been denied to the companies receiving those services by reason of the irregularities confirmed in the invoices issued by that service-providing company. Provided that is has been confirmed that the services subject to value added tax has in fact been supplied, the tax relating to those transactions is due and is correctly payable to the tax authority. Any other interpretation would be liable to encourage situations that may prevent the correct collection of value added tax, which Article 22 of the Sixth Directive on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 94/5, seeks specifically to avoid.

   (see paras 43, 44, operative part 2)