CJEU – Recent Developments in Value Added Tax 2021

S. 2141. Introduction

CJEU jurisprudence plays an important role in the prevention and resolution of VAT disputes. In the preliminary ruling procedure, the Court does not only resolve a narrow case, but renders an interpretation on one or more provisions of EU law. This interpretation is binding and relevant for all Member States and in all situations where the respective norms are applied. The binding interpretation of place of supply rules is of special importance when it comes to the issue of juridical VAT double taxation. Juridical VAT double taxation arises in the case of a multiplication of places of supply; that is, when two or more states consider the place of supply to be located within their territory. This might happen, inter alia, where Member States involved in a cross-border transaction interpret a place of supply rule differently.

In most cases, double taxation happens unintentionally: the states involved in a cross-border transaction disagree about the underlying principle for the determination of the place of supply or agree on the underlying principle, but interpret it differently. However, double taxation can also be intentional: the involved states are fully aware of th...