Comments on ECJ C-475/23: Free provision of goods for third party activities does not inhibit VAT deduction rights

• Providing a good for free to a third party for activities benefiting the provider does not inhibit the right to deduct VAT paid on the purchase of that good
• A recent EU Court of Justice ruling (case C-475/23) highlighted this principle
• The case involved an Austrian company sending material to Romania for processing and selling in the EU
• The Romanian tax authority denied the Austrian company VAT deduction on a machine purchase, claiming lack of proof of business use
• The company was also criticized for not maintaining proper accounting records in Romania
• EU law requires two conditions for VAT deduction: the entity must be a taxable person, and the goods/services must be used for taxable operations
• It must be provided by another taxable person

Source: eutekne.info

See also

• C-475/23 (Voestalpine Giesserei Linz) – Judgment – Right to deduct VAT if goods purchased are provided to a subcontractor for the subcontractor’s taxable transactions

---

• Join the Linkedin Group on ECJ VAT Cases, click HERE
• VATupdate.com – Your FREE source of information on ECJ VAT Cases

---

 

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.