The fundamental principle of the VAT neutrality. Right to deduct the tax applied on the operations performed upstream. Exercise requirements

DREPTUL CONTENCIOSULUI ADMINISTRATIV ȘI FISCAL

Abstract

The provisions of art. 1562 the final paragraph of the Fiscal Code should be read in conjunction with the provision of art. 1471 of the Fiscal Code, and the Order of the NAFA no. 1790/2012 cannot be invoked to limit the application of the provisions of art. 1471 of the Fiscal Code, a highly legally binding legislative act. Moreover, the Court acknowledges that the reasons for denial invoked by the fiscal bodies to exercise the claimant’s right to the deduction of VAT related to these invoices are of strictly formal nature, under the circumstances in which the reality of issue of the invoices, of the taxable operations performed by the claimant with the goods delivered as such by its upstream supplier was not challenged, but also the fact that the VAT related to these purchases/deliveries was paid by the claimant, furthermore, its supplier collected it from the State budget, and it was not proven any double benefit of the claimant as regards the amount of the VAT related to these tax invoices.