The European Court of Justice ruled in Case T-363/25 that VAT deductions cannot be claimed on re-invoiced supplies when the underlying transaction structure is deemed fictitious. A Hungarian automotive parts trader was denied input VAT deduction on purchases from German suppliers re-invoiced through a domestic intermediary.
The ECJ ruled that VAT deductions cannot be claimed on re-invoiced supplies when the underlying transaction structure is deemed fictitious, even if invoices appear valid.
The ECJ ruled that VAT Directive 2006/112/EC must be interpreted as precluding input VAT deduction when supplies are re-invoiced through intermediaries without legitimate commercial substance.
Hungarian tax authorities deemed the invoice fictitious because goods were purchased from German suppliers but re-invoiced through a domestic intermediary solely under a cooperation agreement.
Organisations using intermediaries must ensure legitimate commercial substance exists in the transaction structure, not merely VAT claim structuring, to support input VAT deduction claims.
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KMLZ · about 2 hours ago
Germany introduces Section 21b to the VAT Act from 1 January 2026, addressing import VAT treatment when customs declarations are filed in one EU Member State but goods are cleared in another. The new rules clarify that import VAT liability arises domestically when goods are presented domestically, with specific provisions for AEO C holders using centralised clearance.
Duijn Tax · about 2 hours ago
From 1 January 2026, the Netherlands extends its VAT revision regime to costly real estate services exceeding €30,000. The new rules introduce a five-year revision period for qualifying renovation and improvement services, requiring real estate owners and developers to reassess VAT positioning on ongoing projects.
KMLZ · about 2 hours ago
The German Federal Fiscal Court ruled in July 2025 that input VAT on renovation costs for a historic castle is deductible when the property is intended for taxable rental activities, regardless of whether the renovation was financed through grants or donations. The ruling confirms that profitability is not required for taxable person status.
VatCalc · about 9 hours ago
The EU has agreed an interim €3 customs levy for parcels that will take effect on 1 July 2026. Romania and Italy have already implemented national levies of 25 RON (~€5) and €2 respectively for low‑value parcels, while the Netherlands and France remain in proposal stages. The move aims to curb VAT and customs fraud on low‑value e‑commerce shipments.
Pagero · about 12 hours ago
Serbia’s new e‑invoicing law, adopted in Official Gazette No. 109/2025, introduces mandatory e‑invoicing for retail sales to corporate cardholders and public sector entities, postpones pre‑filled VAT returns to 2027, and requires internal invoices to be generated in the SEF system. The Ministry of Finance also released SEF version 3.14.0 with new validation and reporting features.
Bloomberg Tax · about 18 hours ago
The Austrian Federal Ministry of Finance posted a Federal Finance Court decision clarifying liability for standard consumption tax (NoVA) and VAT on cross-border vehicle acquisitions. The ruling addresses the taxpayer’s center of life and the statute of limitations for assessments, upholding the Austrian Tax Office’s assessment in a case involving a German citizen residing in Austria who purchased a vehicle in Germany. The court dismissed the taxpayer’s arguments that the center of vital interests was in Germany and that the assessments were time-barred.
