ECJ clarifies requirements for VAT deduction in case of unreliable purchase invoices

• The EU Court of Justice clarified the requirements that must be respected in relation to VAT fraud indicators
• A Hungarian company was denied the right to deduct VAT due to unreliable purchase invoices related to carousel fraud
• The company failed to prove diligence in verifying the identity of the supplier, leading to the exclusion of VAT deduction
• The Hungarian court asked if personal contact with the supplier is a condition for VAT deduction, leading to a referral to the EU Court of Justice
• The EU Court of Justice reiterated that VAT deduction must be excluded if invoked fraudulently or abusively

Source: eutekne.info

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.

---

---