Latest EU developments in relation to VAT recovery
In the Irish Tax Review 2016 Issue 3 Ruth Linehan’s article, The Realities of VAT Compliance - A Case Study, explored, through a case study example, the common difficulties which companies encounter during the VAT compliance process. In ensuring that your company “gets it right” from a VAT compliance perspective one of the points discussed was in relation to maintaining supporting VAT documentation and ensuring that valid VAT invoices are obtained to support a claim for VAT recovery.
Where any one of the requirements of a valid VAT invoice are missing, Irish Revenue may seek to impose penalties on the supplier and to disallow VAT recovery for the customer on the invoice. On September 15th 2016 the CJEU gave its decision on two cases involving invoice requirements namely the right to input credit, and the content of invoices, and in both cases the Court ruled in favour of the taxpayer. In this article, Ruth Linehan considers these recent judgments of the CJEU and the potential impacts for companies.