Substantive and formal requirements in the VAT case law of the CJEU

Abstract: The VAT system has been operating since 1967 across the European Union and is currently still in need to be adopted as definitive. Some issues should be confronted in 2018 before the implementation towards a fairer and simpler system. The proposal from the Commission set up in 2016 details the changes taken into account. As a cornerstone of the mentioned VAT system, this thesis will analyse the view of the CJEU when it comes to exercising the right to deduct. More specifically, it will analyse the European jurisprudence when applying the various conditions, either the substantive and the formal requirements are laid down in the previous Sixth Directive or the VAT Directive currently in force. The aforementioned is a practical approach which will allow for case by case review of all the details exposed by both the CJEU and national courts in multiple situations. The process will entail comprehensive reviews of simple wrongfully made invoices to taxpayers involved in fraud when exercising the right to deduct or occasionally, the right to exempt VAT. Over the years, the CJEU has given more priority to the substantive requirements over the formal ones, establishing the principle of “substance over form” as an interpretative aid. However, such a principle involves many exceptions that have been discussed in case law and will be clarified and classified in this paperwork.