The right to deduct VAT is a fundamental right of the taxable person. It results from the principle of fiscal neutrality.
It is not enough for the VAT administration to invoke an abuse of rights in order to reject the VAT deduction. Indeed, it is still necessary to establish that the conditions of abuse as defined by the Court of Justice of the European Union are met. The tax administration tends to invoke the abuse of rights regardless of the fulfillment of the said conditions.
Source Aurelie Soldai
See also ECJ C-227/21 (HA.EN.) – Judgment – No Denial of input VAT if the seller would not pay output VAT
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