Court of Justice 1 April 2004, C-90/02 (Finanzamt Gummersbach v Gerhard Bockemühl.)

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In Case C-90/02, the Court of Justice (Fifth Chamber) addressed whether a taxable person liable for VAT as the recipient of services under the reverse charge procedure (Article 21(1) of the Sixth Directive 77/388) must hold an invoice drawn up in accordance with Article 22(3) of that Directive in order to exercise the right to deduct. The Court held that, where the reverse charge procedure applies, only Article 18(1)(d) of the Sixth Directive governs the conditions for exercising the right to deduct, requiring the taxable person solely to comply with the formalities laid down by the Member State concerned, and not to hold a compliant invoice under Article 22(3). Accordingly, requiring possession of such an invoice as an additional condition would be incompatible with the Directive, as it would risk rendering the right to deduct ineffective where the tax administration already holds the information necessary to establish the taxable person's liability as recipient of the supply.AI