VAT stated in a tax document for a fictitious transaction must be paid

In 8 Afs 21/2014-30 case, the Supreme Administrative Court (SAC) corrected the regional court’s interpretation of Section 108(4)(f) of the VAT Act. The provision stipulates that the person issuing a tax document indicating tax is also obliged to…

VAT on the lease of real estate

On 1 January 2021, a provision of the VAT Act restricting the option to tax leases of selected real estate entered into effect. At the end of 2020, the General Financial Directorate (GFD) issued information to ensure a better understanding of the…

VAT after Brexit deal

On Christmas Eve, after lengthy negotiations that were very tense up to the last moment, the UK finally struck an agreement on its future relationship with the EU. For EU companies, this means that preparations made so far will not be wasted. Below…

Customs procedure post-Brexit

Brexit is drawing unstoppably closer, even though the coronavirus pandemic seems to have upstaged it for now. Early next year, however, the UK's withdrawal will hit us with full force. Which is why British experts are trying to shed light on at…

Holdings: do failed investments and changes in use of inputs lead to correction of VAT deduction?

At the beginning of November, the Court of Justice of the European Union (CJEU) ruled in the case of a Portuguese holding company which intended to acquire another company, but the transaction did not ultimately materialise. The Court was dealing…

CJEU: Right to deduct VAT in full also for expenses benefiting a third party

In the Vos Aannemingen case (C-405/19), the Court of Justice of the European Union (CJEU) dealt with whether it is possible to deduct, in full, input VAT on expenditures that benefited a third party, and when such benefit shall be regarded as…

Neither creditor nor debtor have to be VAT registered at the time of correcting tax base

Is it compatible with the VAT Directive that both creditor and debtor must be taxable persons for VAT purposes both when providing the supply and when correcting/reducing the taxable amount? The Court of Justice of the EU (CJEU) dealt with this…

Practical pitfalls of quick fixes

An amendment to the VAT Act implementing long-awaited changes to the intracommunity supply of goods (quick fixes) entered into effect on 1 September 2020. We may already comment on the first practical implications for taxpayers and on solutions to…

Is it possible to deduct VAT on induced investments?

The Court of Justice of the EU (CJEU) in the recent Mitteldeutsche Harstein-Industrie AG case (C-528/19) dealt with whether it is permissible to deduct input VAT on construction work carried out on a municipal road for the benefit of a municipality,…

SAC on deadline for correcting the VAT amount and on appealing against implicit tax assessments

In a recent judgment, the Supreme Administrative Court (SAC) held that it is possible to correct the VAT amount within three years of the end of the taxable period in which the tax liability arose, whereas it is not possible to appeal against…

Business with Northern Ireland after Brexit

The European Commission has prepared a draft of changes to the VAT rules applicable to trading with Northern Ireland. The draft has been submitted as part of the preparations for Brexit at the end of this year. The new rules adjust the existing…

Is it possible to correct tax base for claims not lodged in insolvency proceedings?

In Case C-146/19, the Court of Justice of the EU (CJEU) held that a creditor may adjust the VAT base for a claim not lodged in insolvency proceedings if they prove that the claim would have been irrecoverable even if it had been lodged in…