Case: Refusal to deduct input tax from deliveries of scrap gold; Requirements for the taxpayer to “need to know” about someone else’s “VAT fraud”

1. NV: What measures can reasonably be required of a taxable person to prevent their own involvement in another person’s VAT fraud depends essentially on the particular circumstances which, according to the evidentiary rules of national law, which must not affect the effectiveness of Union law, are to be determined.

2. NV: It is true that a taxable person cannot generally be required to check whether the issuer of an invoice for the supply of goods for which the right to deduct is claimed had the goods in question at his disposal, was able to deliver them and his has complied with its obligations regarding the declaration and payment of VAT. However, if there are indications of irregularities or VAT fraud, the taxable person may be required to obtain information about another economic operator from whom he intends to purchase goods or services in order to ensure that he is reliable.

Source: bundesfinanzhof.de