Volume 46 (2018) / Issue 12

Thomas Vanhee, Thaís Cunha, 'Case law note: A Noncumulative Single Stage Sales Tax Does Not Infringe on the VAT Directive’s Prohibition to Introduce a Turnover Tax' (2018) 46 Intertax, Issue 12, pp. 1022–1024


On 7 August 2018, the Court of Justice of the European Union (CJEU), in case C-475/17, (CJEU 7 August 2018, Case C-475/17, Viking Motors and Others, TKM Beauty Eesti OÜ, TKM King AS, Kaubamaja AS, Selver AS v. Tallinna linn, Maksu- ja Tolliamet, ECLI:EU: C:2018:636) issued a ruling on the interpretation of Article 401 of the VAT directive (Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, OJ L 347/1 (11 Dec. 2006)). The article prevents Member States from introducing another turnover tax similar to VAT, which may impair the functioning of the internal market. 

The Court debated the nature and concept of a turnover tax, the prohibition of maintenance or implementation of national taxes that resemble the same nature of VAT, as well as the essential characteristics of VAT.

This case note reflects on the decision adopted by the Court interpreting the same Article 401 in respect of the sales tax imposed by the Tallin City Council, Estonia.

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ISSN: 0165-2826
ID: TAXI2018107