EU : General Court of the European Union, 3 June 2026, T-198/25, G Kft
The General Court of the European Union ruled on whether a national rule is compatible with the VAT Directive when it prevents a taxable person from correcting their VAT position once a tax audit becomes final.
A company discovered after a tax audit that it had incorrectly applied a VAT regime to certain transactions. It requested a correction. The Tax Authority refused because the audit was now final and binding.
The Court found this approach compatible with the VAT Directive. Member States may restrict the possibility of corrections once an audit is closed, provided the taxable person had the opportunity to assert its rights during the audit or through available appeals.
The Court rejected the argument based on VAT neutrality. That principle does not require Member States to permit corrections after the fact when the taxpayer has already had a fair chance to challenge the authority’s position during the procedure.
