CJEU - Recent Developments in Value Added Tax 2022

1. Introduction

The CJEU delivered only five judgments in 2022 relating to the taxable amount and reduced rates in EU VAT. In this contribution, the authors discuss two cases on the taxable amount and three on VAT rates.

S. 2342. Taxable Amount

Over the last 12 months, only two cases have been decided by the CJEU relating to the taxable amount. First, in Zipvit – a case primarily focussing on the right of deduction of input VAT – the Court ruled on the taxable amount for invoices without reference to VAT. Second, the CJEU delivered a ruling in DSAB Destination Stockholm on the concept of “multi-purpose vouchers”.

2.1. Case C-156/20, Zipvit

2.1.1. The Facts and Questions Referred

This case concerns a recipient’s right of deduction of input VAT that is not actually invoiced yet is legally due by the supplier. In essence, the question relates to the determination of the taxable amount for the purposes of the right of deduction for the customer.

Between 2006 and 2010, the British Royal Mail provided public postal services to Zipvit that were presumed to be exempt based on guidance notes issued by His Majesty’s Revenue and Customs (HMRC). However, in light of (then) recent CJEU case law, it was conc...