- The TEAC confirmed the denial of an IVA (VAT) refund to a non-established entity involved in silver trading, as it was proven the entity knew or should have known it was part of a fraudulent chain.
- The decision applies the EU anti-abuse principle and the “knew or should have known” doctrine, even without explicit national legislation.
- The ruling reinforces that VAT refunds can be denied if there is objective evidence of knowledge or presumed knowledge of fraud.
- The TEAC follows established EU Court of Justice jurisprudence, emphasizing that direct participation in fraud is not required—awareness or negligence suffices.
- The case consolidates the standard of diligence required from economic operators regarding VAT fraud.
Source: allyon-etl.es
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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