Tallinna Kaubamaja Grupp
Resolution of the European Court of Justice in the proceedings of the claims for refunding the sales tax on non-excise goods filed by the subsidiaries of Tallinna Kaubamaja Grupp AS
On 11 August 2014, Tallinna Kaubamaja Grupp AS published a stock exchange announcement, in which it was announced that the subsidiaries of the group were appealing for a refund of the sales tax paid in Tallinn in the period from 1 June 2010 to 31 December 2011 in the total amount of 3.27 million euros. The city of Tallinn has refunded to the subsidiaries of Tallinna Kaubamaja Grupp AS the sales tax paid on excise goods and the dispute remains ongoing with respect to non-excise goods (stock exchange announcements of 10 May 2016 and 30 June 2016).
By the ruling of 1 August 2017, the Supreme Court filed to the European Court of Justice an appeal for a preliminary ruling regarding the claims for refunding the sales tax paid by the subsidiaries of Tallinna Kaubamaja Grupp AS (AS Viking Motors, AS TKM King, OÜ TKM Beauty Eesti, Kaubamaja AS, and Selver AS) on non-excise goods and halted the proceedings until entry into force of the resolution of the European Court of Justice in case no. C-475/17.
On 7 August 2018, the European Court of Justice passed a resolution in this case in which a negative response was given to the question posed by the Supreme Court of whether the sales tax which was applicable in the city of Tallinn was in conflict with the value added tax directive and damaged the functioning of the common system of value added tax of the European Union or distorted competition.
Next, the Supreme Court will reopen the halted proceedings regarding claims for refunding the sales tax paid on non-excise goods and will settle the claims filed by AS Viking Motors, AS TKM King, OÜ TKM Beauty Eesti, Kaubamaja AS, and Selver AS regarding the tax resolutions of the city of Tallinn. Yesterday’s resolution of the European Court of Justice does not entail any negative consequences for the subsidiaries of Tallinna Kaubamaja Grupp AS, as the disputed amounts of sales tax have already been paid to the city of Tallinn.
Tallinna Kaubamaja Grupp AS is notifying the stock exchange of important steps in the court disputes related to the claims for refunding the sales tax pursuant to the procedure provided for in the rules and regulations of the stock exchange.
Chairman of the Board
Phone +372 731 5000