According to a
decision of the 3rd Civil Chamber of the Court of Cassation
published in the Official Journal dated July 22, 2026, Banking and Insurance
Transactions Tax (BITT) may be charged to consumers.
The plaintiff
initiated debt enforcement proceedings against the defendant seeking
reimbursement of the amounts collected by the defendant as Banking and
Insurance Transactions Tax (BITT) in connection with the loans obtained by the
plaintiff. The defendant objected to the debt enforcement proceedings,
resulting in their suspension. Following the suspension of the proceedings, the
plaintiff filed a lawsuit seeking annulment of the objection, continuation of
the debt enforcement proceedings, and debt enforcement denial compensation.
Following the
proceedings, the court of first instance ruled in favor of the plaintiff. The
court concluded that, under the law, the liability for BITT rests with the
bank. It held that the relevant contractual provision, which had been included
in the consumer agreements without negotiation, constituted an unfair term and
was therefore null and void, and accordingly ruled that the tax liability
rested with the bank.
The Ministry of
Justice sought reversal of the decision in the interest of law, and the Court
of Cassation re-examined the decision. Following its review, the Court of
Cassation concluded that BITT may be passed on to the consumer through an
agreement between the parties, and that the relevant provisions in the
agreement between the parties do not constitute unfair terms.
The Court of
Cassation’s reasoning was that where the loan agreement and the pre-contractual
information form expressly stipulate that the tax will be paid by the consumer,
such a provision does not constitute an unfair term.
The following conclusions can be drawn from the decision of the Court of Cassation:
- Banks may pass on BITT to consumers in consumer loan agreements.
- For BITT to be passed on to the consumer, this must be expressly and clearly set out in the agreement.
- Where the agreement clearly provides for this provision and the consumer has been informed in advance that BITT will be paid by the consumer, the relevant contractual provision cannot be deemed an unfair term.
In conclusion, the
bank remains the statutory taxpayer liable for BITT. However, if this is
expressly and clearly provided for in the loan agreement, the bank may pass
this cost on to the consumer.
