Opinion of Advocate General Bobek in the case SEB Bankas.
Bobek suggests that the Court respond to Lietuvos vyriausiasis administracinis teismas (Supreme Administrative Court, Lithuania) as follows:
- Articles 184 to 186 of Council Directive 2006/112/EC shall be interpreted as meaning that the adjustment mechanism provided for in those provisions does not apply in the situation, such as the one in the main proceedings, where an initial deduction of value added tax could not have been made at all because the transaction at issue was exempt from VAT. However, the principle of fiscal neutrality requires that the Member State recover the amount corresponding to a VAT deduction unduly granted, pursuant to the applicable provisions of national law.
- When the competent authorities correct tax obligations of a taxable person, following a (re)classification of a supply for VAT purposes, such as the supply of land in the main proceedings, these authorities shall strike an appropriate balance between the obligations to ensure fiscal neutrality and the uniform application of the law and that taxable person's legitimate expectations.
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