TaxAdministrationFrance and Spain in hot water over VAT

France and Spain in hot water over VAT

France and Spain breach EU law by reducing VAT on government-assisted purchases

France 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.

The European Court of Justice (ECJ) said the two countries are breaking the
EU’s sixth VAT directive of 1977.

Both countries argued their systems were fairer, preventing distortions of
competition, however, the ECJ said VAT had to be levied and deducted in full
regardless.

It highlighted a previous legal opinion that stated: ‘member states are
required to apply the sixth directive even if they consider it to be less than
perfect’.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter