C is a Romanian company providing services to companies in insolvency proceedings, subject to VAT. The Romanian tax authorities found irregularities in the chargeability of the tax. According to the CJEU, continuous services provided by administrators and liquidators to companies in insolvency fall within the scope of the VAT Directive. VAT becomes chargeable even if the remuneration cannot be paid due to the debtor’s lack of funds. The direct and immediate link between input and output transactions for the right to deduct VAT must be established based on the objective content of those transactions. If a VAT assessment is issued based on new matters without the person’s opportunity to express a view, the decision must be annulled according to the principle of defence.
Source BTW jurisprudentie
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