Keywords
Summary

Keywords

1. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Taxable persons — Persons providing services to the State under an employer-employee relationship — Excluded — Provider unaware of that relationship — Establishment of an invoice mentioning an amount of value added tax — Amount not to be so categorised — (Council Directive 77/388, Arts 2(1) and 4(1) and (4))

2. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Adjustment of tax improperly invoiced — Amount mentioned as value added tax on an invoice following a mistake as to the categorisation of the service provided — Reimbursement of the amount not precluded by Article 21(1)(c) of Directive 77/388 — (Council Directive 77/388, Art. 21(1)(c))

Summary

1. The amount mentioned as value added tax on the invoice drawn up by a person providing services to the State may not be classified as value added tax where that person erroneously believes that he is providing those services as a self-employed person whilst in reality there is an employer-employee relationship.

In fact, such a person is not a " taxable person" within the meaning of Article 4(1) of the Sixth Directive 77/388 and, accordingly, under Article 2(1) thereof the services which that person provides are not subject to VAT.

see paras 40, 42, operative part 1

2. Article 21(1)(c) of Sixth Directive 77/388, under which value added tax is liable to be paid if it is mentioned on an invoice or other document serving as such, does not preclude reimbursement of an amount mentioned in error by way of value added tax on an invoice or other document serving as invoice where the services at issue are not subject to value added tax and the amount invoiced cannot therefore be classified as value added tax.

see para. 53, operative part 2