(Lombard Ingatlan Lízing, C-404/16, 12/10/2017)
This case covers a financial leasing with definite transfer of ownership where the lessor may no longer claim payment of the leasing instalments because the lessor has terminated the agreement due to breach of contract by the lessee.
The Court states that such a situation is covered by the concepts of ‘cancellation’ and ‘refusal’ [article 90(1) of Directive 2006/112/EC]. As a consequence, the lessor may obtain a reduction of the VAT taxable basis, even if the applicable national law does not allow the taxable amount to be reduced in the case of non-payment [article 90(2) of Directive 2006/112/EC].
Irina is a Tax Consultant specialized in VAT compliance, Intrastat, Environmental Fund and Clawback reporting. Fluent in English and Spanish, Irina assists the clients in the process of VAT registration, VAT compliance and claw-back purposes, as well as other various advisory matters that may arise.