New: 2022-03-10
Legal case: time of entry of the right to deduct
The European Court of Justice has ruled that a national provision in which the right to deduct input tax arises even at the time a transaction takes place is incompatible with Article 167 of the VAT Directive, when the output tax under a national exemption introduced under Article 66 (1) b becomes chargeable to the supplier or supplier only upon receipt of the compensation and the compensation has not yet been paid ( C-9/20, Grundstücksgemeinschaft Kollaustraße 136 ).
It is clear from the current national rules in the case that the cash method was not introduced for input tax (Article 167a) but only for output tax (Article 66, first paragraph, point (b)). In ML, both of these articles have been introduced through ch. §§ 8 and 18 (the closing method). This means that for a buyer who has the closing method, the input tax during the current tax year must be reported for the accounting period during which the payment has been made, regardless of the seller’s accounting method. A buyer who has the invoicing method can, with the support of the provision in ch. § 16 ML, also continue to report the input tax according to the invoicing method even if the seller has the closing method.
Source: skatteverket.se
