In a Czech case the ECJ once again had the opportunity to comment on the material requirements for the deduction of input VAT. In the current case, the focus of the judicial review was on the ways to demonstrate and prove that the supplier of the service is a taxable person within the meaning of the VAT Directive. Continue reading
Tax & Legal
The right to deduct input VAT is denied not only if the taxable person himself commits an evasion, but also if he is aware that he participated with his acquisition in a tax evasion. In the latter case the refusal of the input tax deduction is a consequence of the failure to comply with the responsibilities in suspect cases. The taxable person who knew or should have known that he or she was participating in a fraudulent transaction assists the perpetrators of that fraud and becomes an accomplice thereto. The European Court of Justice (ECJ) confirms its previous case law on this issue. Continue reading
The Supreme Tax court has followed the ECJ in holding that the VAT-freedom of an intra-community delivery is dependent on the formal documentation requirements of the VAT Implementation Order, but is lost if the supplier knew of the customer’s intent to defraud.