Judgment_paragraph 40 · Teritorialna direktsia na Natsionalnata agentsia za prihodite — Plovdiv v Rodopi-M 91 OOD (C-259/12)

40As regards the means of establishing the penalty at issue, it is to be noted that the penalty as prescribed in Article 182(1) and (2) of the ZDDS is graduated in amount. If the rectification occurs with just one month’s delay, the fine is only 25% of the amount of VAT payable. It is only if the delay exceeds the period of one month that the fine is increased to 100% of the amount of VAT payable. Such a penalty is therefore liable to encourage taxable persons to adjust as rapidly as possible deductions which have been made but no longer have a basis and thus to achieve the objective of ensuring the correct collection of tax.