The invalidity of a legal transaction under national civil law cannot as such lead to the exclusion of the deduction of input VAT. According to a decision of the ECJ, however, this only applies if the national court has examined and ensured that the transaction is not a fictitious transaction or that, if this transaction was physically carried out, it is neither in connection with VAT evasion nor considered as an abuse of rights.
Source PwC
See also
- Summary of ECJ C-114/22: VAT deduction even if a taxable economic transaction is regarded as fictitious
- C-114/22 (Dyrektor Izby Adminitracji Skarbowej w Warszawie) – Judgment – VAT deduction even if sale of the brands was a sham transaction
Latest Posts in "European Union"
- New InfoCuria case-law database and search tool
- New General Court VAT case – C-903/25 (Grotta Nuova) – No details known yet
- New General Court VAT case – C-914/25 (Modelo Continente Hipermercados) – No details known yet
- Roadtrip through ECJ Cases – Focus on ”Exemption – Financial transactions – Credits and transfer of Credits” (Art. 135(1)(b))
- ECJ C-465/25 (Matin Maier) – Questions – Can Businesses Recover VAT if Supplier’s VAT Number Is Revoked?
