Scope of the mention describing the service acquired and value of complementary annexes to the invoice

Can national tax authorities refuse the right to deduct VAT solely because the taxable person holds an invoice which refers to “legal services rendered until the present date”, even though the same authorities have available all the necessary information for ascertaining whether the substantive conditions for the exercise of that right are satisfied?

Even if the Court held, following the question referred, that such mentions do not comply with the requirements of the VAT directive, the ECJ added that such a deficiency may not substantiate the rejection of the right to deduct VAT if the company provides evidence that the substantive conditions for the exercise of that right are satisfied.

This judgment represents a major softening of the European case law which considered so far that the right to deduct VAT was subordinate to the strict condition that the invoices include all the information required by the VAT directive. In France, the public guidelines already provided that the absence of a mention in an invoice did not necessarily deprive the company of its right to deduct VAT (BOI-TVA-DED-40-10-10 §55). The Conseil d’Etat had also demonstrated some flexibility (see in particular CE, 26 March 2012, n°326333).

Michel Guichard

Michel Guichard, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]

Odile Courjon

Odile Courjon, Partner, has developed a strong expertise in indirect tax issues (VAT, wage taxes, excise taxes, export control and customs) in France and overseas. She advises her clients in […]

Bertrand Jeannin

Bertrand Jeannin, Partner, supplies strategic and technical advice to French and foreign multinational groups in all aspects of their VAT and customs policies. Major focuses of Bertrand’s input involve the […]

William Stemmer

William Stemmer, Partner, has more than 15 years’ experience in Indirect Tax matters. William particularly specializes in the real estate and financial sectors. William is a lecturer at the University […]

Nicolas Kazandjian

Barrister registered with the Hauts-de-Seine Bar, he started my career in the indirect tax service line of Deloitte Taj in 1999. My current position is Director. My area of expertise […]

Vanessa Irigoyen

With more than 16 years of experience, Vanessa has extensive expertise in the implementation of international efficiency business models for customs, export control and indirect tax purposes. Her functions notably […]

Anne Gerometta

Anne, Managing Director, has been advising companies on indirect tax issues for more than 17 years. Anne is in charge of the FSI sector (Bank, Insurance, Asset Management) within TAJ […]

Delphine Nicault

Delphine Nicault is an Attorney-at-Law at the French Bar. She joined Deloitte in 2002 and assists her clients on day-to-day VAT issues. She developed an expertise in the VAT and […]