Comments on ECJ C-506/21: Refusal of input VAT deduction in case of fraud also for second purchaser of goods

Both the first and the second purchaser in a supply chain may be denied the deduction of input VAT in the full amount if they were aware of a VAT fraud. The alternative brought by the referring German Tax Court to limit the non-deductible input VAT amount to the actual tax loss suffered by the State was rejected by the ECJ. ECJ judgment of 24 November 2022 C‑596/21 Finanzamt M

Source: PwC DE

See also C-596/21 (Finanzamt M) – Judgment – Right to deduct VAT in case of Tax Evasion in a prior transaction

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