Reverse Charge in VAT: a Landmark Ruling of CJEU

In its judgment of 18 March 2021, the Court of Justice of the European Union (CJEU) confirmed that the provisions of the EU VAT Directive are to be interpreted as precluding national legislation which makes the exercise of a taxable person’s right to deduct input tax in the same accounting period as that in which the tax due was payable on the transaction subject to the tax due on those transactions being entered in the appropriate tax declaration submitted within three months following the end of the month in which the tax liability arose in relation to the goods acquired.

Source: KPMG

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