The tax shown on an invoice documenting a transaction which should be subject to a reverse charge is not deductible. However, the tax authorities should refund such VAT paid if recovery of the VAT from the supplier would be impossible or excessively difficult…. This content is for Full Membership members only. Want to read background,...

A Member State may refuse to refund VAT (via the Thirteenth Directive) on the grounds that the taxable person has failed to submit corrected invoices within a certain time limit, with the result that the authority has taken a final administrative decision which has removed the possibility to apply for this refund at a later…...

Non-payment of VAT is punishable by imprisonment if the amount threshold of EUR 250,000 is exceeded, while in relation to withholding tax in direct taxation the threshold is EUR 150,000 Such provisions are permissible. The sanction of imprisonment for non-payment of declared VAT above EUR 250,000 is not contrary to the principle of effectiveness. Such…...

The right to VAT refund resulting from transactions effected in periods „closed” by a prior tax inspection cannot be denied…. This content is for Full Membership members only. Want to read background, core of the problem, conclusion and more? Sign up for free!Already a member? Log in here...

The supplier issued an invoice showing VAT. The tax authorities, however, ordered the buyer to settle this transaction on a reverse charge basis. At the same time – according to national regulations – the supplier no longer has the right to correct his invoice „in minus”. In this situation, the buyer cannot be denied the…...

If a transaction is subject to reverse charge, the purchaser cannot deduct input VAT incorrectly stated on an invoice. However, he may seek a refund of the unduly paid VAT to the supplier from the tax authorities if it proves excessively difficult to recover it from the supplier. It is disproportionate to apply a sanction…...