62019CJ0371_INF
Judgment of the Court (Fifth Chamber) of 18 November 2020 – Commission v Germany (VAT refund – Invoices)
(Case C‑371/19) (
1
)
(Failure of a Member State to fulfil obligations – Taxation – Value added tax (VAT) – Directive 2006/112/EC – Article 170 and Article 171(1) – VAT refund to taxable persons who are not established in the Member State in which they purchase goods and services or import goods subject to VAT but who are established in another Member State – Directive 2008/9/EC – Rules for the refund of VAT – Articles 9 and 10 – Article 15(1) – Article 20 – No copy of an invoice or an importation document – Systematic rejection of incomplete refund applications – Refusal to ask the taxable person to complete the application after the expiry of the time limit for submitting an application – Principle of fiscal neutrality – Principle of proportionality – Admissibility)
1.
Actions for failure to fulfil obligations – Proof of failure – Burden of proof on Commission – Submission of facts showing the failure to fulfil obligations – Incumbent on Member State concerned to refute evidence – Obligation on the Member State concerned to prove the change in the administrative practice in accordance with the reasoned opinion of the Commission
(Art. 258 TFEU)
(see paras 65, 68, 69)
2.
Harmonisation of fiscal legislation – Common system of value added tax – Refund of the tax to taxable persons not established in the territory of the country – Detailed rules for the exercise of the right to a refund – Obligation to provide information supplementing a refund application – Rejection of refund applications submitted in sufficient time, without first inviting applicants to complete their applications by submitting copies of the invoices or import documents – Infringement of the principle of fiscal neutrality and of the effectiveness of the right to a refund
(Council Directives 2006/112, as amended by Directive 2008/8, Arts 170 and 171 and 2008/9, Arts 5, 10, 15(1) and 20(1))
(see paras 77-84, 86-88, operative part 1)
3.
Harmonisation of fiscal legislation – Common system of value added tax – Refund of the tax to taxable persons not established in the territory of the country – Detailed rules for the exercise of the right to a refund – Obligation to provide information supplementing a refund application – Acknowledgment of receipt of the tax refund application making no request for additional information or supporting documents – Breach of principle of the protection of legitimate expectation – None
(Council Directive 2008/9, Art. 15(1), 19(1) and 20(1))
(see paras 96-99)
Operative part
The Court:
1.
Declares 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 of 12 February 2008, laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, 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 of 28 November 2006 on the common system of value added tax, as amended by Council Directive 2008/8/EC of 12 February 2008, and Article 5 of Directive 2008/9;
2.
Dismisses the action as to the remainder;
3.
Orders the Federal Republic of Germany to bear its own costs and to bear two thirds of the costs incurred by the European Commission;
4.
Orders the European Commission to bear one third of its costs.
(
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)	OJ C 213, 24.6.2019.