Opinion of the Advocate General — ECLI:EU:C:2001:318
Date: 2001-06-07
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Action for failure to fulfil obligations - successful
Origin: Italy

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Deduction of input tax — Refund of excess — Refund by the issue 
of Government bonds — Not permissible 
(Council Directive 77/388, Arts 17 and 18(4» 
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SUMMARY — CASE C-78/00 
A Member State which provides for the 
refund of excess VAT by the issue of 
Government bonds to a category of taxable 
persons whose tax position is in credit fails 
to fulfil its obligations under Articles 17 
and 18 of Sixth Directive 77/388/EEC on 
the harmonisation of the laws of the 
Member States relating to turnover taxes. 
The conditions for a refund that a Member 
State sets under Article 18(4) of the Sixth 
Directive must enable the taxable person, 
in appropriate conditions, to recover the 
entirety of the credit arising from that 
excess tax, which implies that the refund 
is carried out within a reasonable period of 
time by a payment in liquid funds or 
equivalent means; the method of refund 
adopted must not, in any event, entail any 
financial risk for the taxable person. 
(see paras 34, 39 
and operative part) 
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