The ECJ ruled on Hungarian VAT deduction rules in Case No. C-537/22, involving a wholesale business in Hungary. The Tax Authorities denied VAT deduction on office supplies invoices, suspecting fraudulent transactions. The ECJ clarified that Tax Authorities can reject VAT deduction if diligence is lacking, they must prove VAT fraud, and taxpayers must exercise due care to avoid indirect involvement in VAT fraud when claiming deductions.
Source GlobalVATcompliance
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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