- ECJ ruled that tax authorities can deny VAT deduction for transactions that did not occur, regardless of the recipient’s knowledge of VAT fraud (C-501/24).
- Administering VAT refunds for non-EU customers is a taxable service, not VAT-exempt, and is distinct from the export of goods (C-427/23).
- VAT refund administration services do not qualify for VAT exemptions under Articles 146(1)(e) or 135(1)(d) of the VAT Directive.
- The VAT refund process does not involve a legal and financial transfer of ownership of funds required for financial service exemption.
- The principle of legitimate expectations does not prevent taxation of these services, even if they were previously treated as VAT-exempt.
Source: kpmg.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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