Keywords
Summary

Keywords

Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Adjustment of tax improperly invoiced - Determination of conditions in which adjustments may be made - Competence of the Member States - Scope and limits

(Council Directive 77/388)

Summary

$$Since the Sixth Directive 77/388 does not contain any provisions relating to the adjustment by the issuer of an invoice of value added tax which has been improperly invoiced, it is for the Member States to lay down the conditions in which the improperly invoiced tax may be adjusted. However, where the issuer of the invoice has in sufficient time wholly eliminated the risk of any loss in tax revenues, the principle of the neutrality of value added tax requires that tax which has been improperly invoiced can be adjusted without such adjustment being made conditional upon the issuer of the relevant invoice having acted in good faith. Therefore, where such a risk has been eliminated, the adjustment of value added tax which has been improperly invoiced cannot be dependent on the discretion of the tax authorities.

( see paras 48 to 49, 58, 60, 63, 68, 70 and operative part 1 and 2 )