Interpretation of the case C-154/20 (Kemwater ProChemie) decided on December 9, 2021
The importance of the “Know your supplier” principle and “retaining evidence” to support the VAT deduction is demonstrated once again by the Kemwater ProChemie (C-164/20) EU VAT ruling. At first glance, the judgment (which was released yesterday) may seem confusing, but my reading of the case is the following.
The input VAT deduction must be rejected if it cannot be evidenced that the supplier is a “taxable person”. This is because a substantive condition to enjoy VAT deduction is that a supply should be performed “by a taxable person”.
Source Mohamed El Kastite
See also
- ECJ C-154/20 (Kemwater ProChemie) – Judgment – No Right to deduct VAT on services supplied by an unknown entity
- ECJ C-281/20 analyzed – Part 2: ”naming” and ” status” of the supplier, formal or material condition for the right to deduct VAT
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