Teritorialna direktsia na Natsionalnata agentsia za prihodite – Plovdiv v Rodopi-M 91 OOD

In the Bulgarian case of Teritorialna direktsia na Natsionalnata agentsia za prihodite – Plovdiv v Rodopi-M 91 OOD (Case C-259/12) the tax authority imposed a penalty on a company which had reclaimed input tax shown on a cancelled invoice. The company appealed and the case was referred to the CJEU for a ruling on whether Articles 242 and 273 of Directive 2006/112/EC permitted the imposition of a penalty on ‘taxable persons who have allegedly failed to fulfil on time their duty to show circumstances in their accounts that are of significance to the calculation of VAT’. The CJEU held that ‘the principle of fiscal neutrality does not preclude the tax authorities of a Member State from imposing upon a taxable person who has not fulfilled within the period prescribed by national legislation his obligation to record in the accounts and to declare matters affecting the calculation of the...