A contract like an invoice gives the right to deduct VAT
A written contract can be considered an invoice, according to the CJEU in the Raiffeisen Leasing case, C-235/21.
The dispute analyzed by the CJEU was based on a frequently occurring, albeit specific, sale and leaseback agreement. Despite this, the conclusions of the judgment may have serious implications, by analogy, for other similar issues under VAT.
An agreement may be considered an invoice if VAT is shown in it (even when the VAT rate is not indicated, but the rate could be derived from such an agreement), and it contains that information which is necessary for the tax authority to determine whether the material prerequisites for the right to deduct VAT have been met.
– From the CJEU’s considerations, it seems to me that the form of the document itself is not that important. However, the CJEU conditionally indicated, shifting the burden to the national judiciary, that it is up to the referring court to assess the provisions of the contract in terms of meeting the material prerequisites for the right to deduct VAT. The ruling is significant, but raises questions. It is difficult to predict how much impact it will have on the practice of documenting VAT settlements both on the part of taxpayers and the approach of tax authorities themselves – points out Łukasz Wozniak, manager at Thedy & Partners.