Comments on ECJ case C-475/23: Ruling on input tax recovery for goods provided free of charge

• Voestalpine Giesserei Linz GmbH (VGL) produced moulded parts in Romania and sent them to customers in the EU
• VGL provided a building and crane to contractors for processing work, free of charge
• ECJ considered VGL’s ability to recover input tax on the purchase of the crane
• ECJ ruled that input tax recovery could be allowed if the crane was necessary for processing the parts
• Romanian law denied input tax recovery if separate accounts were not kept for the fixed establishment
• ECJ stated that input tax recovery must be allowed if substantive requirements are met, even if formal requirements are not fulfilled
• ECJ supported VGL’s claim for input tax recovery on the costs of the crane

Source: taxscape.deloitte.com

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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