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"
- Blog: ViDA, E-Invoicing & E-Reporting mandates in the EU: Let’s End the Fragmentation Before It Starts
- CJEU Upholds Fixed VAT Default Interest, Rejects Proportionality Challenge in Lithuanian Case
- EU Reconsiders Reduced VAT Rates Amid Rising Fiscal Costs and Questionable Social Benefits
- EU Reaches Provisional Agreement to Strengthen Fight Against Cross-Border VAT Fraud
- EU Approves New VAT Data-Sharing Law to Strengthen Cross-Border Anti-Fraud Efforts
