Recently, an extremely interesting judgment of the Court of Justice of the European Union (hereinafter: CJEU) was issued. It shows that Article 88(3a)(4)(c) of the VAT Act[1] is incompatible with Directive 2006/112/EC[2]. The Court ruled that the appearance of a transaction under national civil law, without proving that it involved tax fraud or abuse of rights, is not a sufficient reason to deny a VAT taxpayer his fundamental right – the right to deduct VAT.
- Background to the case
- NSA and… Doubt
- CJEU bluntly – the tax authorities have no discretion
- Practical consequences
Source: MDDP
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
- 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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