CTT – Correios de Portugal v Autoridade Tributária e Aduaneira

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 result of the change in liability. In making this adjustment...