Case C‑590/13

Idexx Laboratories Italia Srl

v

Agenzia delle Entrate

(Request for a preliminary ruling from the Corte suprema di cassazione)

‛Reference for a preliminary ruling — Indirect taxation — VAT — Sixth Directive — Articles 18 and 22 — Right to deduct — Intra-Community acquisitions — Reverse charge procedure — Substantive requirements — Formal requirements — Failure to comply with the formal requirements’

Summary — Judgment of the Court (Eighth Chamber), 11 December 2014

Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Reverse charge procedure — Taxable person liable for value added tax as the recipient of goods or services — Right to deduct — Conditions — Substantive requirements — Formal requirements — Compliance with the formalities and the obligations relating to accounts and filing returns — Non-compliance — Penalty — Loss of the right to deduct — Not permissible

(Council Directive 77/388, Arts 18(1)(d) and 22)

Articles 18(1)(d) and 22 of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes must be interpreted as containing formal requirements relating to the right to deduct, failure to comply with which cannot result in the loss of that right.

In that regard, it must be stated that the substantive requirements for the right to deduct are those which govern the actual substance and scope of that right, as provided for in Article 17 of the Sixth Directive, entitled ‘Origin and scope of the right to deduct’.

The formal requirements for that right, which are set out in Articles 18 and 22 of the Directive, by contrast, regulate the rules governing its exercise and monitoring thereof and the smooth functioning of the value added tax system, such as the obligations relating to accounts, invoicing and filing returns.

(see paras 41, 42, 46, operative part)

Case C‑590/13

Idexx Laboratories Italia Srl

v

Agenzia delle Entrate

(Request for a preliminary ruling from the Corte suprema di cassazione)

‛Reference for a preliminary ruling — Indirect taxation — VAT — Sixth Directive — Articles 18 and 22 — Right to deduct — Intra-Community acquisitions — Reverse charge procedure — Substantive requirements — Formal requirements — Failure to comply with the formal requirements’

Summary — Judgment of the Court (Eighth Chamber), 11 December 2014

Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Reverse charge procedure — Taxable person liable for value added tax as the recipient of goods or services — Right to deduct — Conditions — Substantive requirements — Formal requirements — Compliance with the formalities and the obligations relating to accounts and filing returns — Non-compliance — Penalty — Loss of the right to deduct — Not permissible

(Council Directive 77/388, Arts 18(1)(d) and 22)

Articles 18(1)(d) and 22 of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes must be interpreted as containing formal requirements relating to the right to deduct, failure to comply with which cannot result in the loss of that right.

In that regard, it must be stated that the substantive requirements for the right to deduct are those which govern the actual substance and scope of that right, as provided for in Article 17 of the Sixth Directive, entitled ‘Origin and scope of the right to deduct’.

The formal requirements for that right, which are set out in Articles 18 and 22 of the Directive, by contrast, regulate the rules governing its exercise and monitoring thereof and the smooth functioning of the value added tax system, such as the obligations relating to accounts, invoicing and filing returns.

(see paras 41, 42, 46, operative part)