ECJ C-108/20 (Finanzamt Wilmersdorf) – Questions – VAT on fraudulent transactions recoverable without participation, connection, encouragement and/or facilitation?

Date plus intro

Article in the EU VAT Directive

Articles 167 and 168(a) of Council Directive 2006/112/EC (Right to deduct VAT)

Article 167
A right of deduction shall arise at the time the deductible tax becomes chargeable.

Article 168
In so far as the goods and services are used for the purposes of the taxed transactions of a taxable person, the taxable person shall be entitled, in the Member State in which he carries out these transactions, to deduct the following from the VAT which he is liable to pay:
(a) the VAT due or paid in that Member State in respect of supplies to him of goods or services, carried out or to be carried out by another taxable person;

Facts

Questions

Are Articles 167 and 168(a) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax ¹ to be interpreted as precluding the application of national law under which input tax deductions are not to be allowed where, when turnover tax fraud about which a taxable person knew or should have known was committed at a preceding stage, the taxable person, through the transaction carried out with him or her, did not participate in and was not connected to the turnover tax fraud and did not encourage or facilitate the turnover tax fraud committed?

AG Opinion

Decision

Personal comments/VATupdate

Source