The right to deduct VAT in cases of fraudulent behaviour: some considerations on a recent CJEU ruling

Court of Justice of the European Union, Sec. V, 24 November 2022, Case C-596/21

Abstract

The Court of Justice of the European Union has recently ruled on the right to deduct input VAT in the context of chain transactions involving a fraudulent supply. In line with its well-established case law, the Court clarified that, where a transaction is carried out in furtherance of fraud, the right to deduct VAT must be denied whenever the final purchaser knew, or could not reasonably have been unaware, of the fraudulent conduct committed within the chain of supplies.