Interpretation of the case C-154/20 (Kemwater ProChemie) decided on December 9, 2021
The importance of the “Know your supplier” principle and “retaining evidence” to support the VAT deduction is demonstrated once again by the Kemwater ProChemie (C-164/20) EU VAT ruling. At first glance, the judgment (which was released yesterday) may seem confusing, but my reading of the case is the following.
The input VAT deduction must be rejected if it cannot be evidenced that the supplier is a “taxable person”. This is because a substantive condition to enjoy VAT deduction is that a supply should be performed “by a taxable person”.
Source Mohamed El Kastite
See also
- ECJ C-154/20 (Kemwater ProChemie) – Judgment – No Right to deduct VAT on services supplied by an unknown entity
- ECJ C-281/20 analyzed – Part 2: ”naming” and ” status” of the supplier, formal or material condition for the right to deduct VAT
Latest Posts in "European Union"
- Roadtrip through ECJ Cases – Focus on ”Place of supply of Goods – Chain Supplies” (Art. 32)
- EU Must Intensify Efforts Against Tax Fraud and Corruption, Says Chief Prosecutor
- Complex Interplay: Transfer Pricing and VAT Challenges for Multinational Corporations in the EU
- Complex Interplay: Transfer Pricing and VAT Challenges for Multinational Corporations in the EU
- German E-Commerce Group Achieves Multi-Country VAT Compliance Post-OSS Suspension with hellotax Support
