- Aptiv Services Hungary claimed VAT deduction in 2021 for intra-community acquisitions from 2016-2018, after receiving invoices late.
- The Hungarian Tax Authority refused the deduction, insisting it should have been claimed via corrections to earlier returns, which was no longer possible for some years.
- The Court of Justice of the EU ruled this refusal violates EU VAT law and principles of neutrality, effectiveness, and proportionality.
- The right to deduct VAT arises when both the right exists and the taxpayer has the invoice; denying deduction in the period of invoice receipt would make exercising this right impossible.
- Therefore, the tax authority cannot refuse VAT deduction to a good-faith taxpayer in such circumstances.
Source: btwjurisprudentie.nl
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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