- The Tax Court allows the refund of VAT to non-established entrepreneurs based on sufficient evidence provided in the review process
- Payment of invoices documenting the transactions supporting the requested refunds is not explicitly required by tax law
- Lack of proof of invoice payment alone is not enough to deny VAT refunds, additional verification is needed to prove the transactions are false
- The case involved a non-established entity in Spain seeking VAT refunds for 2021 and 2022, which were partially denied by the tax authorities
- The entity appealed and provided additional documentation such as bank statements and payment details, leading to the Tax Court overturning the denial and ordering the refunds
- The Tax Court decision was based on the taxpayer’s burden of proof, lack of explicit requirement for invoice payment justification in VAT law, and acceptance of additional evidence in the review process.
Source: ato.gov.au
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.
