CJEU – Recent Developments in Value Added Tax 2016

S. 91Dispute Resolution in VAT: status quo under the EU VAT Directive and Room for Improvement

Karoline Spies

1. S. 93Causes of Disputes in an EU Context

1.1. Assessment of Facts and Interpretation of Norms

Disputes between taxpayers or taxable persons – the more suitable term in the area of VAT – on the one hand and authorities of Member States on the other hand arise for mainly two different reasons: the two parties may disagree (i) on the assessment of the facts or (ii) on the interpretation of the applicable legislation. Although in both cases there should be only one answer or at least one solution which can be supported by the most persuasive arguments, this perfect solution is hard to find. With regard to the facts businesses and authorities may for example disagree on whether the business conducts a “genuine economic activity” by using humans and technical resources located in the Member States’ territories. Such requirements on economic substance are a precondition for the application of a number of VAT provisions. When it comes to interpretation it is inherent in any provision that the wording is open to more than one interpretation. The correct interpretation may be identified only by...