Comments on ECJ C-527/23: VAT Deduction for Intragroup Services

• The CJEU ruled on December 12, 2024, that VAT deductions cannot be denied based on subjective assessments of service necessity or appropriateness when services are used for taxable transactions by a taxpayer, even if provided to other group companies.
• The court emphasized that the right to deduct VAT is fundamental and outlined the criteria for VAT recovery, placing the burden of proof on taxpayers to demonstrate the direct link between services and taxable transactions.
• This judgment marks the first in a series addressing VAT and transfer pricing (TP) in intragroup transactions, potentially offering clearer guidance on these issues as additional cases are pending before the CJEU.

Source: deloitte.com

See also

• C-527/23 (Weatherford Atlas Gip) – Refusal of the right to deduct if services are not used for taxable transactions

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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