Judgment_paragraph 35 · A v Finanzamt M (C-596/21)

35As regards fraud, according to settled case-law, a taxable person is to be refused the right to deduct not only where fraud is committed by the taxable person him or herself, but also where it is established that that taxable person, to whom goods or services which served as the basis on which to substantiate the right to deduct were supplied, knew or ought to have known that, through the purchase of those goods or services, he or she was participating in a transaction connected to VAT fraud. Indeed such a taxable person must, for the purposes of Directive 2006/112, be regarded as a participant in such fraud, whether or not he or she profits from the resale of the goods or the use of the services in the context of the taxable transactions subsequently carried out by him or her, since that taxable person, in such a situation, aids the perpetrators of that fraud and becomes their accomplice (see order of 14 April 2021, Finanzamt Wilmersdorf, C‑108/20, EU:C:2021:266, paragraphs 22 and 23, and judgment of 11 November 2021, Ferimet, C‑281/20, EU:C:2021:910, paragraphs 46 and 47 and the case-law cited).