No risk of loss of tax revenue EU VAT case law

4 cases of the Court of Justice and the General Court of the European Union on this point of VAT law, from 2022 to 2026.

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Provisions these cases interpret most

Article 203 of Directive 2006/112/EC Persons liable for payment of VAT to the tax authorities · 4 of these cases
Article 167 of Directive 2006/112/EC Origin and scope of right of deduction · 1 of these cases
Article 168 of Directive 2006/112/EC Origin and scope of right of deduction · 1 of these cases
Article 179 of Directive 2006/112/EC Rules governing exercise of the right of deduction · 1 of these cases
Article 180 of Directive 2006/112/EC Rules governing exercise of the right of deduction · 1 of these cases
Article 183 of Directive 2006/112/EC Rules governing exercise of the right of deduction · 1 of these cases
Article 250 of Directive 2006/112/EC Returns · 1 of these cases
Article 252 of Directive 2006/112/EC Returns · 1 of these cases

The 4 cases, most recent first

Under each case, what the Court decided, from its summary. The summaries are AI-generated and are not official documents: open the case for the Court’s own text.

T-198/25 G Kft. (Adjustment of VAT after a tax inspection)

Judgment · 3 June 2026

Adjustment of VAT wrongly invoiced after a tax inspection

The Court answers that it does not. Such national legislation is compatible with EU law provided that the taxable person had, in real terms, a genuine opportunity and a reasonable period in which to adjust the VAT before the inspection was opened, during the inspection itself, or when challenging the decision closing it. The Court regarded it as relevant that the taxpayer had had several years in which to act and that there were no objective circumstances that had prevented it from doing so. The judgment confirms that the neutrality of VAT does not, on its own, override national procedural requirements where those requirements respect the principle of effectiveness and legal certainty.

C-794/23 Finanzamt Österreich (VAT invoiced in error to final consumers II)

Judgment · 1 August 2025 · Austria

Correcting VAT overcharged on simplified invoices to a mixed customer base

The risk of revenue loss is assessed invoice by invoice. No Article 203 liability for the excess VAT invoiced to a non-taxable person, even if similar supplies were made to taxable persons. But the exempting concept covers only non-taxable persons. A taxable recipient triggers the risk even if the supply was used privately or for non-deductible purposes. Estimating the proportion of invoices issued to taxable persons is permissible if all relevant circumstances are weighed and neutrality, proportionality and the rights of the defence are respected, the estimate being rebuttable. Relevant to any business in mass market B2C sectors (leisure, hospitality, retail, transport) that has applied the wrong rate and issued simplified receipts to unidentified customers.

C-606/22 Dyrektor Izby Administracji Skarbowej w Bydgoszczy (Possibility of adjustment in the case of incorrect rate)

Judgment · 21 March 2024 · Poland

Correcting an incorrect VAT rate where only till receipts were issued

Such a practice is precluded. VAT is automatically included in the agreed price under Article 78(a), even where the rate was wrongly determined, but that does not deprive the supplier of a right to a refund, notably where the excessive rate cost it sales volume or margin. Refusing correction solely because till receipts, not invoices, were issued breaches effectiveness where cash register memory allows accurate correction. Unjust enrichment may be invoked only if the authorities establish, by economic analysis of all relevant circumstances, that the burden was completely neutralised. Retailers and consumer facing businesses across sectors (leisure, hospitality, food) that have charged too high a rate on till receipt sales can pursue adjustment by amended return.

C-378/21 Finanzamt Österreich (VAT invoiced incorrectly to final consumers)

Judgment · 8 December 2022 · Austria

VAT wrongly invoiced to final consumers at too high a rate

Article 203 does not apply. It targets the risk of loss of revenue created by the recipient's right of deduction, and it bites only on the amount exceeding the VAT properly due under Article 193. Where the recipients are exclusively final consumers with no deduction right, there is no such risk and the supplier is not liable under Article 203 for the incorrectly invoiced part. The remaining questions did not need answering. Relevant to B2C businesses that have applied too high a rate, especially retail, leisure and hospitality operators issuing simplified till receipts where reissuing invoices to individual customers is impracticable.