CJEU - Recent Developments in Value Added Tax 2023

S. 2461. Introduction

In this chapter dedicated to the right to deduct, this author will analyse five cases decided by the CJEU between November 2022 and May 2023 (all of them were decided without an AG Opinion). The selected cases deal with:

• The objective factors from which it may/must be concluded that the taxable person has committed “passive VAT fraud” and the consequences on the right to deduct when several taxable persons are involved (cases C-512/21 Aquila Part Prod and C-596/21 Finanzamt M);

• the question of whether a transaction that is considered as invalid under civil law may automatically be considered as fraud or abuse for VAT purposes (C-114/22 Dyrektor Izby Adminitracji Skarbowej w Warszawie);

• the method of calculation of penalties for failure to submit VAT returns (C‑418/22 CEZAM); and

• the obligation to adjust deductions related to input goods that have been written off by the taxable person (C-127/22 Balgarska telekomunikatsionna kompania).

2. Aquila Part Prod (512/21)

2.1. Facts and questions raised to the CJEU

Aquila Part Prod Com (hereafter: Aquila) is a Romanian company with its VAT registration in Hungary that acted as an intermediary for the wholesale of food, beverages, an...