- ECJ ruled on Case C-270/24 regarding VAT deduction denial in Hungary
- Hungarian tax authorities denied VAT deductions due to alleged fraudulent transactions
- Case involved a Hungarian company buying machinery through an intermediary
- Tax authorities claimed the invoice was fictitious
- ECJ clarified Directive 2006/112/EC on VAT
- VAT deductions cannot be denied solely on formal invoice defects or fraud assumptions
- Deductions cannot be refused if tax authorities have necessary information
- Decision emphasizes need for evidence of intent or knowledge in fraud cases
- Reinforces taxpayer protections under EU VAT law
Source: globalvatcompliance.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.
