- Federal Finance Court Decision No. GZ. RV/7100854/2022 clarifies input tax deduction from fictitious invoices
- Operator of small transport company carried out transportation for media group
- Taxpayer declared incoming invoices for third-party service expenses for 2017-2019
- Tax Office issued sales tax assessment for 2017, charged sales tax, then issued corrected assessment
- Taxpayer appealed correction, claiming it shouldn’t have been made
- Federal Finance Court found input tax deductions not allowed if services weren’t provided by companies listed on invoices
- Services were provided by undeclared workers, not subcontractors
- Tax Office may assume initial assessments are unlawful and subject to correction based on inaccuracies from tax returns
Source: news.bloombergtax.com
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.
