CJEU decisions on VAT invoicing
In the recent CJEU case of Barlis, the Portuguese tax authorities sought to deny input tax deduction to the taxpayer as the invoice received from their supplier did not contain sufficient detail of the supply, or the timeframe of delivery.
The taxpayer offered additional information concerning the supply, but deduction was still denied. The CJEU ruled that this information should be accepted and deduction permitted, and in any case if the substantive requirements for deduction are met, this should be allowed.
In Senatex, the German taxpayer attempted to deduct input tax despite their purchase invoice not containing the supplier's VAT identification number. This was rejected by the German authorities.
The invoices were retrospectively amended and the authorities allowed deduction, but levied late payment interest. The CJEU ruled that such interest could not be levied.
Businesses should ensure that evidence supporting input tax deduction is in order to avoid issues with the tax authorities at a future date.