Glencore Agriculture Hungary Kft (Case C-189/18)
concerned a case in which the Hungary-based taxpayer contested two
decisions of the Hungarian tax authority denying a tax deduction on
the basis that the taxpayer was aware or should have been aware
that some of its suppliers were committing tax fraud and had issued
fictitious VAT invoices. The Advocate General said that it is for
the tax administration to establish – in the light of
objective factors and without requiring that taxpayer to carry out
checks which are not their responsibility – that the latter
knew or should have known that their counterparty was involved in
VAT fraud. The fact that certain documents are transferred from one
procedure to another does not, per se, result in a breach by the
taxable person. However, if a tax authority is relying on such
documents, it must: (i) give the taxable person access to the
documents it seeks to rely on, not merely a summary, as well as
documents which may be favourable
