Comments on ECJ C-640/23: Tax Office Should Refund VAT If Supplier Cannot

If a buyer paid VAT that was not due and cannot recover it from the seller, they can apply for a refund directly from the tax office.
The CJEU has ruled on this issue multiple times, confirming this process.
This ruling applies to companies in Poland due to harmonized VAT regulations in the EU.
A Romanian company was denied input tax deduction because it received an organized part of an enterprise as a contribution in kind, which is not subject to VAT.
The company’s contractor was audited and found to have correctly paid VAT on the transfer of assets.
The company appealed the decision, requesting reinstatement of the right to deduct VAT.
The case was referred to the CJEU, which ruled that the company should have the right to deduct input tax since it cannot recover the VAT from the supplier.