- Recent CJEU judgment in Case C-171/23 addresses abuse of VAT exemption scheme
- Case involved setting up new company to avoid compulsory VAT registration
- Abuse of law confirmed by tax authorities and CJEU
- Abusive VAT practice defined as operation resulting in tax advantage contrary to objectives of VAT Directive
- VAT exemption scheme designed to support small businesses and reduce administrative burden
- Court of Justice ruled that company cannot benefit from VAT exemption if abuse is proven
- Principle of prohibition of abusive practices must be upheld to combat tax evasion and tax avoidance
Source: pkfapogeo.cz
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.
Latest Posts in "European Union"
- CJEU Ruling: VAT Treatment of Transfer Pricing Adjustments Between EU Member State Companies
- CJEU Rules Intra-Group Payments Under Transactional Net Margin Method Subject to VAT
- European Commission launches three new CBAM Calls for Evidence
- Comments on ECJ C-726/23 (Arcomet) – VAT Applies to Transfer Pricing Adjustments, Clarifying Deduction Requirements
- EU Sugar Taxes: Diverse Approaches to Reducing Sugary Drink Consumption Across Member States
