- In cases where a contract for the sale of goods is null under civil law, the buyer can still claim VAT deduction unless the sale is proven to be fictitious or linked to tax evasion or abuse of rights.
- A recent ruling by the Court of Cassation confirms this principle, stemming from a dispute over VAT deduction on the purchase of a shopping center.
- The ruling emphasizes that VAT deduction cannot be denied solely based on the nullity of the economic transaction, but can be denied if there is no proof of the transaction, if it is deemed an abuse of rights, or if it is linked to tax evasion.
- The appellate court in this case failed to fully consider these factors, focusing only on the nullity of the contract in civil law without addressing its tax implications.
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
