Judgment_paragraph 34 · Modexel – Consultores e Serviços SA v Autoridade Tributária e Assuntos Fiscais da Região Autónoma da Madeira (C-680/23)

34Furthermore, as the Commission submits, giving an economic operator the possibility of carrying forward, after resumption of an economic activity, excess VAT declared when the previous activity ceased could encourage abuse and the establishment of artificial arrangements by economic operators. Such an operator, who, for whatever reason, has failed to comply with the time limit laid down by the national legislation for requesting a refund of excess VAT after ceasing economic activity, could claim to be resuming an economic activity with the main or exclusive purpose of requesting that that excess be carried forward. Such a possibility of deferral could also be contrary to the principle of legal certainty, as the Court has previously indicated that the possibility of exercising the right to deduct VAT without any temporal limit would be contrary to that principle, which requires the tax position of the taxable person, having regard to his or her or its rights and obligations vis-à-vis the tax authority, not to be open to challenge indefinitely (see, to that effect, judgment of 12 April 2018, Biosafe – Indústria de Reciclagens, C‑8/17, EU:C:2018:249, paragraph 36 and the case-law cited).

Modexel – Consultores e Serviços SA v Autoridade Tributária e Assuntos Fiscais da Região Autónoma da Madeira (C-680/23)

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