- Supreme Court ruling denies VAT deduction for buyer in reverse charge transaction if underlying transaction is non-existent
- Buyer responsible for paying VAT in reverse charge, with potential right to deduct
- Right to deduct conditional on transaction being genuine and buyer using due diligence
- Buyer cannot claim VAT deduction if transaction found to be non-existent
- Principle confirmed by Supreme Court to prevent fraud in reverse charge mechanism
- Buyer must prove they were not aware of non-existent transaction to claim deduction
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.
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