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In its latest judgment, the European Court of Justice (ECJ) comments on the legal case Petroma Transports and others regarding the question of VAT deduction following an invoice correction. According to the ECJ’s statements, invoice corrections have to be transmitted to the responsible tax office before decisions on denying VAT deduction are being made. It could be interpreted that VAT deduction with retroactive effect should be pos-sible. Therefore, entrepreneurs are forced to take action by having invoices corrected properly and quickly as well as transmitting the corrected invoices to the tax authorities in time.
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Umsatzsteuer Newsletter 10/2013
Croatia will become the 28th member state of the European Union on 1 July 2013. As from the date of accession Croatia has to implement the common VAT system of the EU. As a result of the upcoming changes, the businesses trading with Croatia need to adjust their processes.
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In its decision of 18 February 2013, the Federal Fiscal Court had to decide on an issue that appears frequently in advisory business: The tax authorities denied VAT deduction for goods purchased by the complainant K by arguing the goods were part of a VAT fraud. Although K explicitly referred to the European Court of Justice’s (ECJ) latest jurisdiction regarding VAT deduction, the Federal Fiscal Court was not able to directly refer to this issue due to K’s failures in the previous instances
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