Voestalpine Giesserei Linz GmbH (VGL) is an Austrian company that produces castings and has them processed in Romania, where it is registered for VAT, through a framework agreement with Austrex Handels GmbH and the Romanian subcontractor Global Energy Products SA (GEP).
The Romanian tax authority found that VGL had not prepared general accounts reflecting its income and expenses in Romania and that a building was provided free of charge to Austrex, leading to the denial of VAT deduction for the purchase of a crane.
The Court of Justice of the European Union (CJEU) ruled that national practices refusing VAT deduction based on the free provision of goods to subcontractors or lack of separate accounting violate the VAT directive, as long as all material conditions for deduction are met.
Source BTW jurisprudentie
See also
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- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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