VAT. Intra-Community supplies and fraud

The Court decided the question referred by interpreting Directive 77/388 / EEC of 17 May 1977, Sixth Directive on the harmonization of the laws of Member States relating to turnover taxes Business in the context of a case pending with the denial of the exemption, deduction or refund of tax societies due to participation in a VAT fraud. The judgment states that under an intra responsibility of national authorities and courts deny a taxpayer rights of deduction, exemption or refund of VAT (but not provisions of national law providing for such denial exist) which is proven that the taxable person knew or should have known that by operation that bases its right, participating in a VAT fraud committed in a supply chain. It is also possible that the Member State rejects such rights despite that fraud was committed in a Member State other than that in which the deduction or refund is requested, and in spite of the taxpayer in that State complied with the requirements formal established by national legislation to benefit from such rights. The Court decided the question referred interpreting Directive 77/388 / EEC of 17 May 1977, Sixth Directive on the harmonization of the laws of Member States relating to turnover taxes business – common system of value added tax: uniform basis of assessment in the context of a case pending with the denial of the exemption, deduction or refund of tax societies due to participation in a VAT fraud.