The CJEU delivered its judgment on 11 November 2021 in the case of ELVOSPOL, s. r. o. v Odvolací finanční ředitelství C‑398/20, wherein the provisions of Article 90 of the VAT Directive had to be interpreted in the context of a refusal by the Czech tax authority to allow an adjustment by Elvospol of a VAT amount. Article 90(1) provides that in the case of cancellation, refusal, or total or partial non-payment, or where the price is reduced after the supply takes place, the taxable amount is to be reduced, and this should be done in accordance with the conditions set down by the Member State. Article 90(2) allows Member States to derogate from Article 90(1) where, in certain circumstances and because of the legal situation prevailing in the Member State concerned, non-payment of consideration may be difficult to establish or may only be temporary.
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