CJEU - Recent Developments in Value Added Tax 2017

1. S. 196Introduction

In 2017, only one case directly dealt with Arts. 9 to 13 of the VAT Directive. Therefore, the main focus of this contribution will be the National Roads Authority case dealing with the application of Art. 13 of the VAT Directive on tolls.

This chapter will also deal with the flat-rate scheme for farmers. In this regard, it will also discuss the Shields & Sons Participation case on the application of Art. 296 of the VAT Directive.

2. Case C-344/15, National Roads Authority

2.1. Facts

In Ireland, most of the toll roads are operated by private operators under a public-private partnership concluded with the National Roads Authority (NRA). However, two roads are operated by the NRA itself. The tolls of privately operated toll roads are subject to VAT. On the other hand, while the NRA treated the tolls levied on the roads it operated as taxable, it was of the opinion, that it should not be obliged to levy VAT.

The main question referred by the Irish court was whether there would be a significant distortion of competition if the NRA could rely on Art. 13 of the VAT Directive with the result that the amount received as tolls on roads it operated by was not taxable.

2.2. Decision

Th...