Case C-588/10

Minister Finansów

v

Kraft Foods Polska SA

(Reference for a preliminary ruling from the Naczelny Sąd Administracyjny)

‛Taxation — VAT — Directive 2006/112/EC — Article 90(1) — Price reduced after the supply has taken place — National legislation which makes the reduction of the taxable amount contingent on the supplier of the goods or services possessing acknowledgment of receipt of a correcting invoice by the purchaser of the goods or services — Principle of VAT neutrality — Principle of proportionality’

Summary of the Judgment

1. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Taxable amount — Reduced in the case of cancellation, refusal, non-payment or reduction of the price

   (Council Directive 2006/112, Art. 90(1))

2. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Taxable amount — Reduced in the case of cancellation, refusal, non-payment or reduction of the price — National legislation which makes such a reduction contingent on the supplier of the goods or services possessing acknowledgment of receipt of a correcting invoice by the purchaser — Breach of the principles of fiscal neutrality and proportionality

   (Council Directive 2006/112, Arts 90(1) and 273)

1.  The requirement that, in order to be entitled to reduce the taxable amount as set out in the initial invoice, the taxable person must be in possession of acknowledgment of receipt of a correcting invoice by the purchaser of the goods or services constitutes a condition for the purpose Article 90(1) of Directive 2006/112 on the common system of value added tax.

   (see para. 42, operative part)

2.  The principles of the neutrality of value added tax and proportionality do not, in principle, preclude the requirement that, in order to be entitled to reduce the taxable amount as set out in the initial invoice, the taxable person must be in possession of acknowledgment of receipt of a correcting invoice by the purchaser of the goods or services. However, where it is impossible or excessively difficult for the taxable person who is a supplier of goods or services to obtain such acknowledgment of receipt within a reasonable period of time, he cannot be denied the opportunity of establishing, by other means, before the national tax authorities, first, that he has taken all the steps necessary in the circumstances of the case to satisfy himself that the purchaser of the goods or services is in possession of the correcting invoice and is aware of it and, second, that the transaction in question was in fact carried out in accordance with the conditions set out in the correcting invoice.

   Copies of the correcting invoice and the reminder addressed to the purchaser of the goods or services to send acknowledgment of receipt and proof of payment or the production of entries from the accounts which make it possible to identify the amount actually paid to the taxable person in connection with the transaction in question by the purchaser of the goods or services may serve that purpose.

   (see paras 41, 42, operative part)

Case C-588/10

Minister Finansów

v

Kraft Foods Polska SA

(Reference for a preliminary ruling from the Naczelny Sąd Administracyjny)

‛Taxation — VAT — Directive 2006/112/EC — Article 90(1) — Price reduced after the supply has taken place — National legislation which makes the reduction of the taxable amount contingent on the supplier of the goods or services possessing acknowledgment of receipt of a correcting invoice by the purchaser of the goods or services — Principle of VAT neutrality — Principle of proportionality’

Summary of the Judgment

1. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Taxable amount — Reduced in the case of cancellation, refusal, non-payment or reduction of the price

   (Council Directive 2006/112, Art. 90(1))

2. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added tax — Taxable amount — Reduced in the case of cancellation, refusal, non-payment or reduction of the price — National legislation which makes such a reduction contingent on the supplier of the goods or services possessing acknowledgment of receipt of a correcting invoice by the purchaser — Breach of the principles of fiscal neutrality and proportionality

   (Council Directive 2006/112, Arts 90(1) and 273)

1.  The requirement that, in order to be entitled to reduce the taxable amount as set out in the initial invoice, the taxable person must be in possession of acknowledgment of receipt of a correcting invoice by the purchaser of the goods or services constitutes a condition for the purpose Article 90(1) of Directive 2006/112 on the common system of value added tax.

   (see para. 42, operative part)

2.  The principles of the neutrality of value added tax and proportionality do not, in principle, preclude the requirement that, in order to be entitled to reduce the taxable amount as set out in the initial invoice, the taxable person must be in possession of acknowledgment of receipt of a correcting invoice by the purchaser of the goods or services. However, where it is impossible or excessively difficult for the taxable person who is a supplier of goods or services to obtain such acknowledgment of receipt within a reasonable period of time, he cannot be denied the opportunity of establishing, by other means, before the national tax authorities, first, that he has taken all the steps necessary in the circumstances of the case to satisfy himself that the purchaser of the goods or services is in possession of the correcting invoice and is aware of it and, second, that the transaction in question was in fact carried out in accordance with the conditions set out in the correcting invoice.

   Copies of the correcting invoice and the reminder addressed to the purchaser of the goods or services to send acknowledgment of receipt and proof of payment or the production of entries from the accounts which make it possible to identify the amount actually paid to the taxable person in connection with the transaction in question by the purchaser of the goods or services may serve that purpose.

   (see paras 41, 42, operative part)