Comments on ECJ C-596/21: Second purchaser may also not deduct input tax in the event of fraud

Suppose a VAT entrepreneur buys a good that was already subject to VAT fraud in the previous transaction. The tax authorities may then in principle refuse the second buyer the VAT deduction, even if the previous parties both knew about this fraud.

Source: taxence.nl

See also C-596/21 (Finanzamt M) – Judgment – Right to deduct VAT in case of Tax Evasion in a prior transaction

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