One of the founding principles of the VAT system is that VAT incurred on costs can be reclaimed, provided it can be linked to a transaction which affords a right to VAT recovery. But how strong does this link have to be? The Court of Justice of the European Union (CJEU) decision in Kretztechnik appeared to have clarified the matter, however two recent cases, University of Cambridge and Frank Smart, have thrown this into doubt and for many the answer is now no clearer.
Source RSM
Latest Posts in "European Union"
- ECJ State Aid C-360/25 (X) – Judgment – National VAT Exemption Without Directive Basis Constitutes Unlawful State Aid
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice” (Art. 203)
- Comments on T-356/25 (Rapera) – Tax Representatives’ Direct VAT Liability Confirmed; Joint Liability Requires Proportionality
- Flashback on ECJ Cases C-62/93 (BP Soupergaz) – Right to deduct cannot be curtailed without Article 27 authorisation
- How to scale your Amazon business into the EU without getting tripped up by VAT
