- The jurisdiction for VAT matters in EU courts was recently transferred from the ECJ (EuGH) to the General Court (EuG) as of October 1, 2024.
- The EuG ruled that the right to deduct input VAT arises when the material requirements are met (i.e., supply for the business), but can only be exercised once a proper invoice is received.
- This decision challenges the traditional German approach, which ties the deduction to the period when the invoice is received.
- The Advocate General has proposed that the ECJ review the EuG’s decision due to possible conflicts with previous ECJ rulings; the ECJ must decide within a month whether to review.
- The ruling may also impact cases involving retroactive invoice corrections, and businesses are advised to keep their tax assessments open to benefit from potential favorable outcomes.
Source: datenbank.nwb.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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