Case C‑122/23

Direktor na Direktsia ‘Obzhalvane i danachno-osiguritelna praktika’ Sofia pri Tsentralno upravlenie na Natsionalnata agentsia za prihodite

v

‘Legafact’ EOOD

(Request for a preliminary ruling
from the Varhoven administrativen sad)

Judgment of the Court (Seventh Chamber) of 11 April 2024

(Reference for a preliminary ruling – Common system of value added tax (VAT) – Directive 2006/112/EC – Turnover taxes – Special scheme for small enterprises – Annual turnover – Difference in treatment between taxable persons – National legislation imposing VAT on a person in the event of late submission of an application for registration – Punitive nature)

1. Harmonisation of fiscal legislation – Common system of value added tax – Special scheme for small enterprises – Exemption scheme – Exceedance of the turnover threshold laid down in the VAT Directive – Entitlement to that scheme subject to the taxable person lodging an application for VAT registration within a prescribed period – Whether permissible

   (Council Directive 2006/112, as amended by Directive 2009/162, Art. 287)

   (see paragraphs 35-39, operative part 1)

2. Harmonisation of fiscal legislation – Common system of value added tax – Special scheme for small enterprises – Exemption scheme – Exceedance of the turnover threshold laid down in the VAT Directive – Application for VAT registration not lodged within the prescribed period – Incurrence of a tax debt – Whether permissible – Conditions – Compliance with the principles of effectiveness and proportionality

   (Council Directive 2006/112, as amended by Directive 2009/162)

   (see paragraphs 41-43, 50, 51, operative part 2)

See the text of the decision.