Value-added tax

It was settled EU law that a taxable person who knew or should have known that, by his purchase, he had been taking part in a transaction connected with fraudulent evasion of VAT should, for the purposes of the, be regarded as a participant in that fraud, irrespective of whether or not he had profited by the resale of the goods. Where it was ascertained, having regard to objective factors, that the supply was to a taxable person who knew or should have known that, by his purchase, he had been participating in a transaction connected with fraudulent evasion of VAT, it was for the national court to refuse that person entitlement to the right to deduct.