Categories:Europe,Tax

VAT penalties for failure to report cancellation of an invoice

On 20 June 2013, the Court of Justice of the European Union (CJEU) rendered a judgment in the case C-259/12 on the appropriateness of the collection of a value-added tax (VAT) fine due in the case of a failure by a taxable person to timely record in its accounts and in its periodic VAT return matters affecting the calculation of VAT.

A Bulgarian company liable to VAT registered a purchase invoice in its accounts and made the corresponding VAT deduction in its periodic VAT return. The invoice was later cancelled and the cancellation was registered only after the legal deadline in the company’s accounts and periodic VAT return. The company then rectified the deduction previously made in respect of that invoice by payment in full of both the amount of VAT initially deducted and of the interest thereon.

The company was charged with a penalty equivalent to the amount of VAT due on the invoice for missing the deadline and therefore contended that the fine was contrary to EU law and more especially to the principles of fiscal neutrality and proportionality…

If you are registered and logged in to the site, click on the link below to read the rest of the Allen & Overy briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

  • Panel reviews

    Panel reviews 2014: The chosen ones

    Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all

  • training

    Accutrainee: Revolution postponed

    At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.

View more analysis from The Lawyer

Overview

One Bishops Square
London
E1 6AD
UK
http://www.allenovery.com

Turnover (£m): 1,234.30
No. of lawyers: 2,194 (UK 200)
Jurisdiction: UK
No. of offices: 11
No. of qualified lawyers: 273 (International 50)