Abuse Principle: Denying VAT Rights in Case of Tax Evasion

• The abuse principle means that individuals cannot invoke EU law in a way that constitutes tax evasion or abuse.
• National authorities and courts can in such cases deny a right that follows from the VAT Directive.
• This applies regardless of which right in the VAT area is affected by the evasion.
• The principle has been applied in various cases concerning transactions that are part of a tax fraud, for example, so-called carousel trading.

Source: www4.skatteverket.se

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.

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