GERMANY ITALY TOBACCO ADVERTISING VAT CASE

BY KEITH NUTHALLGERMAN tobacco company Reemtsma Cigarettenfabriken has won a long-running European Court of Justice (ECJ) bid to recover VAT paid after being invoiced in error by an Italian advertising agency, establishing an important legal principle in the process. Reemtsma had in 1994 handed over Italian Lira 175,022,025 (Euro 90,391), but subsequently discovered the services should have been invoiced without any demand for VAT. The ECJ has now ruled that under EU VAT legislation, the advertising company should try and recover the money handed over to the ...


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