- Safety-net acquisition VAT applies when a buyer uses the wrong VAT-ID for intra-Community acquisitions, leading to additional VAT liability in the Member State of the VAT-ID used.
- Input VAT deduction is not allowed for this safety-net acquisition VAT, causing at least temporary double taxation until proof of correct taxation is provided.
- In case T-638/24, the General Court confirmed that both safety-net acquisition VAT and VAT unduly charged by suppliers are not deductible, but this does not violate EU law as the unduly charged VAT can be corrected.
- The judgment upholds EU principles of neutrality and proportionality, distinguishing the situation from previous ECJ rulings.
Source: kmlz.de
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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