Change in VAT liability: retrospective change to partial exemption method
In CTT – Correios de Portugal v Autoridade Tributária e Aduaneira (C-661/18) (30 April 2020) the applicant (C) provided exempt postal services. It also provided ‘postal bill-payment services’ which were also exempt pursuant to a binding tax ruling given by the Portuguese authorities. This ruling expired on 31 December 2012.
With effect from 1 January 2013 the Portuguese authorities made changes to the VAT rules regarding postal services in response to changes in EU law. C started to account for VAT on postal bill-payment services with effect from April 2015 but did not seek an update to the binding tax ruling until June 2015. The authorities then confirmed that postal bill-payment services were taxable with effect from 1 January 2013.
Consequently C paid the output tax due on such services for the 2013-2015 period. It also adjusted the amount of input tax which it was entitled to recover as a...
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Change in VAT liability: retrospective change to partial exemption method
In CTT – Correios de Portugal v Autoridade Tributária e Aduaneira (C-661/18) (30 April 2020) the applicant (C) provided exempt postal services. It also provided ‘postal bill-payment services’ which were also exempt pursuant to a binding tax ruling given by the Portuguese authorities. This ruling expired on 31 December 2012.
With effect from 1 January 2013 the Portuguese authorities made changes to the VAT rules regarding postal services in response to changes in EU law. C started to account for VAT on postal bill-payment services with effect from April 2015 but did not seek an update to the binding tax ruling until June 2015. The authorities then confirmed that postal bill-payment services were taxable with effect from 1 January 2013.
Consequently C paid the output tax due on such services for the 2013-2015 period. It also adjusted the amount of input tax which it was entitled to recover as a...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")