In Idexx Laboratories v Agenzia delle Entrate (C-590/13) (11 December 2014) the CJEU found that the right to deduct input tax is only subject to substantive requirements. Non-compliance with formal requirements should not result in the loss of the right to deduct.
Idexx had effected intra-Community acquisitions from a French company and a Dutch company but had failed to account for acquisition VAT.
Following an inspection the Italian tax authority had taken the view that those transactions were intra-Community acquisitions subject to the reverse charge procedure. It had therefore assessed Idexx for the acquisition VAT – and imposed a 100% penalty. However Idexx was unable to reclaim any input tax because it had failed to carry out the formalities required by national law.
The issue was therefore whether the right to deduct input tax (Sixth Directive art 18(1)(d)) is subject...
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In Idexx Laboratories v Agenzia delle Entrate (C-590/13) (11 December 2014) the CJEU found that the right to deduct input tax is only subject to substantive requirements. Non-compliance with formal requirements should not result in the loss of the right to deduct.
Idexx had effected intra-Community acquisitions from a French company and a Dutch company but had failed to account for acquisition VAT.
Following an inspection the Italian tax authority had taken the view that those transactions were intra-Community acquisitions subject to the reverse charge procedure. It had therefore assessed Idexx for the acquisition VAT – and imposed a 100% penalty. However Idexx was unable to reclaim any input tax because it had failed to carry out the formalities required by national law.
The issue was therefore whether the right to deduct input tax (Sixth Directive art 18(1)(d)) is subject...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
