The CJEU decides in case C-80/20 (Wilo Salmson France) that EU law precludes the rejection of a VAT refund in certain period merely because this VAT became due in an earlier refund period, while a VAT invoice was issued in the later period.
Businesses should ensure that their purchase invoices meet at least minimum “substantial requirements” when they exercise their right to deduct input VAT and that they also obtain (retroactively) correct VAT invoices meeting all requirements.
Refusal of a VAT refund cannot be overturned by the subsequent cancellation and reissuing of the invoices.
It is important to follow the procedural requirements and stay in legal limitation periods, when submitting refund requests.
Source Grant Thornton
- ECJ C-80/20 (Wilo Salmson France) – Decision – Cancellation and reissuance of invoice does not change period for which VAT refund can be requested
- Roadtrip through ECJ Cases – Right to Deduct VAT and ”Substance over form” concept
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