Comments on ECJ C-527/23: VAT Deduction Irrespective of Service Recipients and Necessity

• The fact that purchased services are provided to multiple subjects is irrelevant for the exercise of the right to deduct VAT
• It is important that the share of costs related to these services corresponds to the benefits the client receives for their own tax-subjected operations
• The deductibility of VAT cannot be conditioned by the financial administration’s assessment of the necessity or appropriateness of the purchase
• These principles were expressed by the Court of Justice in the judgment for case C-527/23, published yesterday
• The case involved a Romanian law company before it was incorporated

Source: eutekne.info

See also

• C-527/23 (Weatherford Atlas Gip) – Judgment – Refusal of the right to deduct if services are not used for taxable transactions

  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.