Comments on ECJ C-527/23: Deduction of input VAT on general administrative services

• Case Overview and Judgment: In the Weatherford Atlas Gip (C-527/23) case, the European Court of Justice (ECJ) ruled that VAT can be recovered on administrative services supplied to multiple members of a corporate group, even if the purchase is not deemed “necessary or appropriate.”
• Referral Court Decisions: The referring court must decide whether there are supplies of administrative services for VAT purposes, if these services are used for taxed transactions, and if the costs borne by the taxpayer correspond to the value of the services received. VAT cannot be claimed on purchases used for third-party transactions.
• Right of Deduction: The ECJ confirmed that if taxable supplies are received and linked to the recipient’s taxable economic activity, the VAT is fully deductible. The necessity or appropriateness of the services and their simultaneous supply to several group members are irrelevant for VAT deduction.

Source KPMG

See also

• C-527/23 (Weatherford Atlas Gip) – Refusal of the right to deduct if services are not used for taxable transactions

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