On 11/04/2019, the ECJ ruled on VAT reference C-691/17*.
The Court stated that the principles of fiscal neutrality and effectiveness must be interpreted as not precluding a practice of the tax authority whereby, in the absence of any suspicion of tax evasion, that authority refuses an undertaking the right to deduct the value added tax which that undertaking, as the recipient of services, unduly paid to the supplier of those services on the basis of an invoice drawn up by that supplier in accordance with the rules on the ordinary VAT regime, whereas the relevant transaction fell under the reverse charge mechanism, and where the tax authority did not,