Judgment of the Court (Fifth Chamber) of 18 November 2020 – European Commission v Federal Republic of Germany
(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)
Language of the case: German
Parties
Applicant: European Commission (represented by: J. Jokubauskaitė and R. Pethke, acting as Agents)
Defendant: Federal Republic of Germany (represented by: S. Eisenberg and J. Möller, acting as Agents)
Operative part of the judgment
The Court:
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;
Dismisses the action as to the remainder;
Orders the Federal Republic of Germany to bear its own costs and to bear two thirds of the costs incurred by the European Commission;
Orders the European Commission to bear one third of its costs.
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1 OJ C 213, 24.6.2019.