CJEU – Recent Developments in Value Added Tax 2020

S. 2151. Introduction

In 2020, more than 30% of the decisions rendered by the Court of Justice of the European Union (Court) in the field of VAT were concerned with the right to deduct (or to obtain a refund). In this chapter, the author focuses on three specific issues, illustrated by seven cases.

In section 2., the author focuses on aborted projects and/or variation between intended and actual use of input transactions, a situation with which businesses are likely to be confronted more often than in the past, now and in the coming years, due to the COVID-19 pandemic and the expected long-lasting effects on the economy.

In section 3., the author discusses new decisions concerning the right to deduct VAT on input transactions that also benefit third parties, an issue in relation to which several questions remain unsolved.

In section 4., the author discusses the right to obtain a refund and the balance between the rights of the taxpayer on the one hand and the preservation of Member States’ tax revenue on the other hand in this specific context.

2. Aborted projects and/or change of use

2.1. Applicable provisions

The right to deduct is to be assessed at the moment when the input VAT is incurred. ...