Case Law Trends: Just a Formality!: Substance over Form in EU VAT and the Right to Deduct Input VAT

When it comes to the right to deduct input tax, substance in principle takes precedence over form. The CJEU has already ruled several times that the fundamental principle of the neutrality of VAT requires that if the substantive conditions for the right of deduction are met, this right can be exercised even when certain formal conditions are not met. In this article the author addresses recent case law of the CJEU on the distinction between formal and substantive conditions for the exercise of the right of deduction and the right to refund. The following topics are addressed: (1) Incorrect or incomplete invoices, (2) mistakes and refunds under Directive 2008/9/EC, (3) including an asset in the business assets and (4) VAT deduction in the event of late filing of intra-Community acquisitions. The recent CJEU cases will be analysed in the light of previous and pending case law providing the reader with an overview of the current situation. formality, substantive condition, deduction, refund, invoice, VAT fraud, business assets, intracommunity acquisition, neutrality principle, principle of proportionality