Refusal of the right to deduct VAT in the event of improper conduct on the part of the issuer of the invoice relating to the goods or services in respect of which the exercise of that right is sought — Burden of proof

Brasov Court of appeal, by sustaining the decision ruled by Brasov County Court, has repealed the
individual tax ruling imposed to DW SRL. The grounds of this decision regarded the lack of evidence
provided by the taxing authority to sustain the fictive character of the transactions concluded by the
issuer of the invoice.

The domestic courts as such enforced the CJEU jurisprudence, which states that the tax authority cannot
refuse the right to deduct VAT on the ground that the contractual partners of the taxable person did not
fulfill their declarative fiscal obligations. The tax authorities bear the burden of proof that the tax
personal had knowledge and was involved in a tax evasion scheme, in order to refuse the right to deduct
VAT.