Fictious and invalidity of the transactions stated sole based on the civil law cannot result in refusing the taxpayer right to deduct input VAT. It is necessary to establish that the criteria for classifying, under EU law that transactions as fictious are met.
The CJEU states that provisions of Directive 2006/112/WE on input VAT deduction must be interpreted as precluding national legislation under which a taxable person is deprived of the right to deduct input VAT, solely because a taxable transaction is regarded as fictitious and invalid under the provisions of national civil law, without having to prove that fictionality/deception has taken place.
Source: itadp.pl
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
