European General Court Issues Preliminary Ruling on Adjustments of Improperly Invoiced VAT for Closed Periods

The European General Court (EGC) June 3 issued a preliminary ruling for Case No. T-198/25, on adjustments of improperly invoiced VAT for periods closed by tax inspections. The taxpayer, a Hungarian company, charged VAT on deposit fees that were later found to be outside the VAT scope and sought a correction and refund through a new tax inspection. The Hungarian tax authorities held that no new facts or circumstances justified a new inspection. Upon request for a preliminary ruling, the EGC found that EU Directive 2006/112/EC, and the principles of effectiveness, fiscal neutrality, and proportionality, must be interpreted as not ...