CJEU - Recent Developments in Value Added Tax 2024

S. 511. Introduction

The ECJ considered in Mensing II that, in accordance with settled case law, the interpretation of an EU law provision in light of its context and aims cannot result in depriving the clear and precise wording of that provision of all effectiveness. When a word is unambiguous, the Court cannot depart from that interpretation. Therefore, it can only be removed by the EU Legislature and not by the development of the law through case law’.

The underlying question of this chapter is why, from an external observer’s perspective, the Court of justice would adopt a literal interpretation of provisions in VAT matters even when it leads to results contrary to the spirit of the Treaty. Is this a fundamental change of the methods of interpretation or only a specific decision motivated by the context of the special scheme applicable to works of art? Beginning from discrimination confirmed by the Court in Mensing II on the basis of what is referred to as a literal interpretation, this chapter separately summarizes each element of reasoning adopted by the Court, its advocate generals, the Commission, and the parties: (1) the Judge’s function compared to that of the Legislature, (2) t...