Comments on ECJ C-537/22: Hungarian anti-VAT carousel fraud scheme violates EU law

• The European Court of Justice rules that Hungary’s anti-VAT carousel fraud scheme is in violation of EU law.
• The case involves a Hungarian company, Global Ink Trade, being denied VAT deduction by the Hungarian Tax Authority due to alleged passive fraud.
• The European Court of Justice specifies the conditions under which VAT deduction can be denied in cases of fraud.
• The Tax Authority must accurately describe the elements of the fraud and provide evidence of the fraudulent actions.
• The Tax Authority must also demonstrate that the taxpayer actively participated in the fraud or knew or should have known that the acquisition of goods or services for which the deduction was claimed was related to the fraud.

Source: taxlive.nl

See also

• ECJ C-537/22 (Global Ink Trade) – Judgment – Deduction of VAT in case of a missing additional evidence/fictitious transactions
• Summary of ECJ C-537/22 (Global Ink Trade): VAT Deduction, Primacy of EU Law and Taxpayer Obligations
• ECJ C-537/22 confirms that the principle of the primacy of EU law establishes that EU law takes precedence over the laws of Member States

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• See also Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological

• Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE

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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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