The Right to Deduct After VIDA - EC Tax Review View The Right to Deduct After VIDA by - EC Tax Review The Right to Deduct After VIDA 35 3

This article analyses the treatment of the right to deduct VAT under the VIDA framework, focusing on Member States’ discretion under new Article 168. It justifies that the objective of new Article 168 of the VAT Directive is to tackle national fraud. It examines whether making VAT deduction conditional on electronic invoicing is compatible with the principles of VAT neutrality as developed in CJEU case law. The study argues that, while new Article 168 pursues legitimate objectives of fraud prevention and digitalization, its application must remain proportionate to avoid undermining the substantive right to deduct VAT.

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