The CJEU’s judgment in Case C-156/20 Zipvit v HMRC clarifies that, for the purposes of Article 168(a) of the Principal VAT Directive, VAT is neither “due” nor “paid” (and, therefore, no input tax is recoverable) where the recipient of the supply, the supplier and the national tax authority had treated a supply which was actually taxable as exempt and both the supplier’s contractual right to charge an amount in respect of VAT in addition to the agreed price and the tax authority’s right to recover the relevant output tax from the supplier had become time-barred.
Source: europeantax.blog
