It is not contrary to the VAT Directive to require that the supplier inform the debtor about his intention to make a bad debt adjustment (recovery of VAT on account of the debt being uncollectible) as a condition for the effectiveness of such an adjustment…. This content is for Full Membership members only. Want to...

As Bulgaria was not a member of the European Union in 2004 when VAT became due on the transaction under review, the Court has no jurisdiction to answer. The subsequent possible adjustment of the input tax deduction, and therefore the adjustment of the output tax, is related to the original transaction, to the original chargeability…...

If VAT was originally paid by the seller and deducted by the buyer, but after 4 years it turned out that the transaction was exempt, it is up to the member state to determine the date on which the obligation to correct the input tax arises. Member States, however, must respect the principles of EU…...

If the debts of the debtor in question have been reduced as a result of the arrangement procedure, the debtor is obliged to reduce the previously deducted tax and consequently to refund the VAT…. This content is for Full Membership members only. Want to read background, core of the problem, conclusion and more? Sign up...