Comments on ECJ C-596/21: What threatens you when the supplier cheats on VAT – the latest ruling of the CJEU on carousel crimes

In the light of the judgment, if your supplier has cheated on VAT in a transaction with you, you may have a problem with deducting the tax from the purchase invoice.

You should be able to show that you have verified the supplier and the transaction itself to the extent possible. Other consequences may also come into play, i.e. a VAT sanction or even a penalization under the Penal and Fiscal Code.

Source Piotr Chojnacki

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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