In EC Commission v United Kingdom (No 7) (ECJ Case C-582/08) the EC Commission formed the opinion that by denying recovery of input tax in respect of certain insurance and financial transactions carried out by taxable persons not established in the EC the United Kingdom had failed to comply with its obligations under Article 2(1) of the EC Thirteenth VAT Directive.
It therefore took infraction proceedings in the ECJ. The ECJ rejected the Commission’s contentions finding that the UK legislation ‘complies with the clear and precise wording of Article 2(1) of the Thirteenth Directive’. The ECJ ordered the Commission to pay the costs.
Why it matters: The Commission is continuing its policy of launching infraction proceedings against Member States. In view of the clear wording of the Thirteenth Directive it is difficult to see why the Commission took this case. The costs...
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In EC Commission v United Kingdom (No 7) (ECJ Case C-582/08) the EC Commission formed the opinion that by denying recovery of input tax in respect of certain insurance and financial transactions carried out by taxable persons not established in the EC the United Kingdom had failed to comply with its obligations under Article 2(1) of the EC Thirteenth VAT Directive.
It therefore took infraction proceedings in the ECJ. The ECJ rejected the Commission’s contentions finding that the UK legislation ‘complies with the clear and precise wording of Article 2(1) of the Thirteenth Directive’. The ECJ ordered the Commission to pay the costs.
Why it matters: The Commission is continuing its policy of launching infraction proceedings against Member States. In view of the clear wording of the Thirteenth Directive it is difficult to see why the Commission took this case. The costs...
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