Court of Justice (Fifth Chamber) 11 April 2013, C‑138/12 (Rusedespred OOD v Direktor na Direktsia ‘Obzhalvane I upravlenie na izpalnenieto’ — Varna pri Tsentralno upravlenie na Natsionalnata agentsia za prihodite.)

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The Court's judgment in Case C-138/12 addresses the principle of fiscal neutrality in value-added tax (VAT) as outlined in Council Directive 2006/112/EC, ruling that a tax authority cannot deny a refund of improperly invoiced VAT to a supplier when the recipient has been definitively refused the right to deduct that VAT. The Court emphasized that the obligation to correct erroneous invoices cannot be contingent upon the discretion of the tax authority, particularly when the risk of tax revenue loss has been eliminated. Ultimately, the ruling affirms that taxable persons may contest national laws that conflict with EU VAT principles, ensuring compliance with the directive's provisions.AI