How European VAT decisions could impact UAE businesses

How European VAT decisions could impact UAE businesses

Written agreement concerning the supply of goods or services, between two VAT-registered persons, could be regarded as a tax invoice for recovering input credit

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By Pankaj S. Jain Published: Sat 26 Nov 2022, 4:12 PM Last updated: Sat 26 Nov 2022, 4:16 PM

The European Court of Justice (ECJ) is amongst the leading judicial authorities whose decisions are accepted as authoritative precedents by the tax authorities across the globe. In this week’s tax conversation, let us discuss important ECJ decisions to get global tax insights. I must caution that one has to examine the context and facts of each case to determine if the ECJ’s jurisprudence will also be applicable in the GCC region.

1. A written contract in place of a tax invoice

In Raiffeisn Leasing case, the ECJ held that a written agreement concerning the supply of goods or services, between two VAT-registered persons, could be regarded as a tax invoice for recovering input credit. The contract should contain all the information necessary for the tax authorities to determine that the material conditions for the right to recover VAT credit have been satisfied.

2. Transaction between head office and branch in different countries

In FCE bank case, the