- The European Court of Justice has ruled that a national law denying a recipient the right to deduct VAT incorrectly paid to the supplier is legitimate, even if it is impossible or excessively difficult to obtain a refund.
- The recipient, if a taxable person, can directly request a refund from the tax authorities.
- The Court of Justice examined a case where a transfer of assets was reclassified as a non-VATable transaction.
- The Court of Justice confirmed that a national law that allows the supplier to claim a refund from the tax authorities and requires the recipient to pursue a civil action against the supplier is in line with the principles of effectiveness and neutrality of taxation.
- The Court of Justice reiterated that if it is “extremely difficult” or “impossible” to obtain a refund from the supplier for incorrectly invoiced and paid VAT, the recipient must be granted the possibility of obtaining a refund directly from the tax authorities.
Source: eutekne.info
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.
