Judgment of the Court (Eighth Chamber) of 7 September 2023 (request for a preliminary ruling from the Finanzgericht Münster – Germany) – Michael Schütte v Finanzamt Brilon

(Case C-453/22, ¹ Schütte)

(Reference for a preliminary ruling – Common system of value added tax (VAT) – Directive 2006/112/EC – Principle of VAT neutrality – Principle of effectiveness – VAT rate set too high on a purchase invoice – Reimbursement of the overpaid tax – Direct action against the tax authorities – Effect of the risk of a double reimbursement of the same VAT)

Language of the case: German

Referring court

Finanzgericht Münster

Parties to the main proceedings

Applicant: Michael Schütte

Defendant: Finanzamt Brilon

Operative part of the judgment

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended by Council Directive 2010/45/EU of 13 July 2010, and the principle of value added tax (VAT) neutrality and the principle of effectiveness

must be interpreted as requiring that a receiver of supplies of goods has a direct right to claim from the tax authorities the reimbursement of improperly invoiced VAT paid to his or her suppliers and paid by those suppliers to the public purse, together with related interest, in circumstances where, first, that receiver cannot be criticised for fraud, abuse or negligence but cannot claim that reimbursement from those suppliers due to the limitation period provided for by national law and, second, there is a procedural possibility of those suppliers subsequently claiming reimbursement of the overpaid tax from the tax authorities after having adjusted the invoices that were issued initially to the receiver of those supplies. Failing reimbursement of the VAT improperly charged by the tax authorities within a reasonable time, the damage suffered on account of the unavailability of the amount equivalent to that improperly charged VAT must be compensated by the payment of default interest.

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¹ OJ C 368, 26.9.2022.