ECJ SUBSIDISED PAYMENTS VAT CASE
October 1st, 2005
BY KEITH NUTHALLFRANCE and Spain have been found in breach of European Union (EU) law by effectively reducing the amount of VAT due on purchases assisted by government subsidies. By not insisting the full rate of VAT was paid or deducted, the European Court of Justice (ECJ) says the two countries are breaking the EU's sixth VAT directive of 1977. The cases are slightly different. For France, the court found fault with the right to deduct VAT being valued considering the likely depreciation of a subsidised good. For Spain, judges objected to a national law ...
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