In the last days of September 2022, the Court of Justice of the European Union (ECJ) ruled that a written agreement concluded between parties can be regarded as an invoice for VAT purposes.

In the case at hand (Case number C-235/21) parties entered into a sale-and-leaseback agreement related to immovable property. However, after entering into that agreement, the parties did not issue an invoice. The tax authorities therefore did not allow the VAT deduction on the lease installments.

According to the ECJ, in the absence of an invoice, the agreement in question can be considered as an invoice. The agreement should, however, contain all the information necessary for the tax authorities to determine whether there is any right to deduct the VAT.

Please contact us to learn more and/or find out whether the above may apply to your situation.