In the case at hand, parties entered into a sale-and-leaseback agreement related to immovable property. However, after entering into that agreement, the parties did not issue an invoice. The tax authorities therefore did not allow the VAT deduction on the lease installments. According to the ECJ, in the absence of an invoice, the agreement in question can be considered as an invoice. The agreement should, however, contain all the information necessary for the tax authorities to determine whether there is any right to deduct the VAT.

Should you have any questions about whether in your situation the agreement may be considered as an invoice for VAT purposes, please contact Loyens & Loeff.