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Mandatory due diligence in VAT? To what extent?

Publication at Faculty of Law |
2019

Abstract

National authorities and courts may, according to settled case-law of the Court of Justice of the European Union, refuse the right to deduct or claim VAT exemption if it is established that the taxpayer knew or ought to have known that he had been involved in a transaction affected by VAT fraud. This case-law has created a new due diligence obligation that taxpayers must maintain when choosing their contractors.