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Comments on ECJ C-114/22: European Court upholds right to VAT deduction, despite “Null and Void” agreement

  • The European Court of Justice has ruled that denying VAT deduction solely based on a transaction’s invalidity under national civil law violates the VAT Directive. The right to VAT deduction must be safeguarded, even if an agreement is considered null and void under national civil law. Tax authorities can deny VAT deduction in the case of objective evidence of fraudulent behavior, but a violation of civil law regulations does not automatically constitute VAT fraud.
  • The case involved a taxpayer who claimed VAT deduction on a trademark transfer invoice, which the tax authorities contested. The Court emphasized the importance of the right to VAT deduction as a fundamental principle of the VAT system and stated that it should not be limited if the material and formal requirements are met. The burden of proof lies with taxpayers, and national rules of evidence play a role.
  • The Court concluded that national legislation automatically denying VAT deduction solely based on a transaction’s invalidity under national civil law goes beyond what is necessary to achieve the objectives of EU VAT legislation. The ruling provides a good overview of the cases in which the VAT administration can deny the right to VAT deduction and emphasizes that concepts from civil law cannot simply be transferred to VAT.

Source VATconsult

See also


  • Join the Linkedin Group on ECJ VAT Cases, click HERE
  • For an overview of ECJ cases per article of the EU VAT Directive, click HERE

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