The EU Court of Justice rules that Hungary is violating EU law in combating VAT carousel fraud. The right to deduct input tax is denied in cases of fraud, but the tax authorities must accurately describe the fraud and provide evidence of fraudulent actions. They must also demonstrate that the taxpayer actively participated in the fraud or knew or should have known about it.
Source Taxlive
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
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
