ECJ decides on retrospective effect of the correction of a VAT invoice

In a judgment of 15 September 2016 (ECJ, 15 September 2016, C-518/14, Senatex), the Court of Justice of the European Union addresses the issue of the retrospective effect for the correction of invoice by the supplier and its impact on the exercise of the right to deduct VAT by the customer.

The Court recalls the possibility for a customer to ask the supplier to rectify an invoice on which certain mandatory particulars were omitted. On the other hand, the Court specifies that national legislation may not oppose the retroactive effect of an invoice correction for mandatory mention so that the right to deduct tax exercised on the basis of the corrected bill covers the year of the supply of goods or services and not just the year the bill was corrected.