Is there an economic responsibility for non-registration of TI in the URTI?
The matter of amendments
Supreme Court disallowed customer’s claim for damages where supplier failed to register tax invoice in electronic register
The ruling of the Supreme Court sitting as the Cassation Commercial Court was delivered on 12 March 2018 in case No. 918/216/17
Whom it will affect
Customer’s input VAT depends on the supplier registering a tax invoice in the electronic register. If the tax invoice is not registered, customers try to seek compensation from their suppliers in commercial courts.
The Supreme Court sitting as the Cassation Commercial Court ruled that a failure to register a tax invoice is an issue subject to tax regulations but not a breach of commercial rules by the supplier.
Even if the parties to a commercial agreement stipulate that the supplier must provide the customer with a tax invoice, the Supreme Court is of the opinion that such an arrangement does not replace tax relations with commercial ones, i.e., it does not create grounds for seeking compensation.
In the end, the Supreme Court confirmed the lower court’s rulings to dismiss the customer’s claim for consequential damages (lost profits).
How to prepare / mechanism of the amendments introduction
Because the registration of a tax invoice may be suspended or technical issues on the side of the tax authorities may prevent the proper registration, the supplier is not always the blame for customer’s input VAT problems.
This Supreme Court’s ruling may serve as an additional argument for suppliers that, due to their weaker negotiation position, agreed to include in an agreement with the customer a clause punishing the supplier for troubles with the registration of tax invoices.