- CJEU confirmed the right to deduct VAT on the acquisition of fixed assets made available under tooling
- Judgment pertains to common practice in automotive industry
- Taxpayer can deduct VAT if assets are used by contracting party only for taxpayer’s taxable transactions
- Case involved Austrian company providing crane to subcontractor in Romania
- Tax authorities denied VAT deduction, CJEU confirmed right to deduct
- Fixed assets must be used strictly for provider’s taxable business activities for VAT deduction to apply
- Exclusivity of goods’ use is crucial in tooling arrangements
- Compliance with formal obligations is important according to CJEU
Source: mddp.pl
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.
