- The CJEU Halifax case established the “Halifax test” on abuse of rights in EU VAT law.
- A taxpayer can be denied input VAT deduction if the underlying transactions are abusive.
- Abuse requires two conditions: a tax advantage contrary to the VAT rules’ purpose, and the essential aim of the transactions being to obtain that advantage.
- If abuse is found, the transactions are recharacterized to reflect the situation that would have existed without the abuse.
Source: meridianglobalservices.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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