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


  • 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