CJEU, ruling of 25 May 2023 – case C-114/22 – W
According to the CJEU, a taxable person cannot be denied the right to deduct input tax solely because a taxable economic transaction is classified as a fictitious
transaction in application of the provisions of national civil law and is void, without it being necessary for the tax authorities to show that the conditions for classifying this transaction as a fictitious transaction in accordance with EU law are met or that, if this transaction was actually carried out, it is based on VAT evasion or abuse of rights.
Source KPMG
See also
- Summary of ECJ C-114/22: VAT deduction even if a taxable economic transaction is regarded as fictitious
- C-114/22 (Dyrektor Izby Adminitracji Skarbowej w Warszawie) – Judgment – VAT deduction even if sale of the brands was a sham transaction
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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