Tax & Legal

Categories: All (17 found)

1. 31.05.2023

   ECJ: Input VAT deduction in case of invalidity of the transa ...

   The invalidity of a legal transaction under national civil law cannot as such lead to the exclusion of the deduction of input VAT. According to a decision of the ECJ, however, this only applies if the national court has examined and ensured that the transaction is not a fictitious transaction or that, if this transaction was physically carried out, it is neither in connection with VAT evasion nor considered as an abuse of rights.

   Categories: European Court of Justice

   Keywords: input VAT deduction, abuse of rights
2. 27.11.2022

   ECJ: Refusal of input VAT deduction in case of fraud also fo ...

   Both the first and the second purchaser in a supply chain may be denied the deduction of input VAT in the full amount if they were aware of a VAT fraud. The alternative brought by the referring German Tax Court to limit the non-deductible input VAT amount to the actual tax loss suffered by the State was rejected by the ECJ.

   Categories: European Court of Justice

   Keywords: VAT fraud, input VAT deduction
3. 26.10.2022

   No input VAT deduction if original invoice is amended to add ...

   According to the Supreme Tax Court, there is no retroactive right for input VAT deduction for a German company receiving services from other group companies who initially issued the invoices without VAT but later went to correct it. The correction of the invoice with retroactive effect requires that the original invoice already contains a VAT amount, which was not the case in the dispute before the court.

   Categories: Supreme Tax Court cases

   Keywords: corrected invoice, input VAT deduction
4. 19.10.2022

   Input VAT deduction in case of staff reduction costs

   Services from so-called outplacement companies for individual support to permanent and indefinitely employed workers, in particular by means of so-called job application training, to help them find new employment relationships, qualify for an input VAT deduction. According to the Supreme Tax Court the entrepreneur is entitled to deduct input tax based on an overriding business interest while the employee's interest in the outplacement counseling is secondary.

   Categories: Supreme Tax Court cases

   Keywords: staff, input VAT deduction
5. 20.09.2022

   Input VAT in case of insolvency of the seller may be deducti ...

   In a preliminary request from Lithuania the European Court of Justice has ruled that it is contrary to EU law for the local tax authority to deny an input VAT deduction on the grounds of alleged abuse of rights solely because the seller is insolvent, and the buyer was aware of this situation.

   Categories: European Court of Justice

   Keywords: VAT fraud, input VAT deduction
6. 09.09.2022

   ECJ: No input VAT recovery for management holding company

   The European Court of Justice decided that a holding company with taxable output services to its subsidiaries is not entitled to deduct input tax if the input services received are not directly and immediately related to the holding company's own sales, but rather to the largely tax-exempt activities of the subsidiaries.

   Categories: European Court of Justice

   Keywords: economic activity, input VAT deduction, ...
7. 18.08.2022

   Update: ECJ referral: Input tax deduction of a management ho ...

   The Supreme Tax Court has asked the European Court of Justice (ECJ) for a preliminary ruling on the input tax deduction of a functional (operating) holding company from certain input costs.

   Categories: Supreme Tax Court cases

   Keywords: economic activity, input VAT deduction, ...
8. 17.03.2022

   Input VAT deduction for the construction of a suspension rop ...

   In its ruling of 20.10.2021 (XI R 10/21), the Supreme Tax Court decided that an input VAT deduction from invoices issued for services in the course of the construction of a tourist attraction which could be used free of charge (here: suspension rope bridge) could be made, if the input services in question were directly related to a service for which payment was received (here: for the provision of parking spaces).

   Categories: Supreme Tax Court cases

   Keywords: input VAT deduction, public authority
9. 15.02.2022

   ECJ: Time of input Vat deduction in case option to charge VA ...

   In a most recent ruling, the European Court of Justice (ECJ) held that, for situations where the output VAT is calculated at the time the remuneration is received rather when the service was completed, the German VAT provision that the right to deduct input VAT must be exercised upon completion of the supply or service is not in line with current EU law, in particular Articles 167 and 66 (1) of Council Directive 2006/112/EC.

   Categories: European Court of Justice

   Keywords: input VAT deduction, remittance basis, r ...
10. 13.12.2021

    ECJ: Deduction of input VAT only after supplier’s status as ...

    In a Czech case the ECJ once again had the opportunity to comment on the material requirements for the deduction of input VAT. In the current case, the focus of the judicial review was on the ways to demonstrate and prove that the supplier of the service is a taxable person within the meaning of the VAT Directive.

    Categories: From Europe

    Keywords: VAT fraud, input VAT deduction, taxable ...
11. 08.03.2019

    Input tax deduction for advance payment despite non-delivery ...

    The purchaser of thermal power units, which were not delivered due to fraud, shall not be denied the right to deduct input tax from an advance payment if the supply appeared to be certain at the time of payment. In three decisions, the Supreme Tax Court follows a judgment of the European Court of Justice (ECJ), to which it has referred the cases earlier for a preliminary ruling.

    Categories: Supreme Tax Court cases

    Keywords: fraudulent supplier, input VAT deduction ...
12. 08.02.2019

    European Court of Justice: Deductible input VAT of a branch ...

    In its judgment in Morgan Stanley (C-165/17) on 24 January 2019, the ECJ ruled on the ratio of deductible input tax in relation to the internal supplies of a French branch to its head office, a financial service provider in the UK.

    Categories: From Europe

    Keywords: Financial Services (FS) / Finanzdienstle ...
13. 11.06.2018

    Input VAT deduction available despite missing details on the ...

    For the purposes of input VAT deduction, the necessary information about the tax point (the date of the supply) may be inferred from the date on which an invoice was issued, if it can be assumed that the service was provided in the month in which invoice was issued.

    Categories: Supreme Tax Court cases

    Keywords: input VAT deduction, alteration of VAT i ...
14. 17.11.2017

    European Court of Justice: compulsory content of invoices fo ...

    On 15 November 2017 the European Court of Justice (ECJ) published its decision in the joined cases of Geissel and Butin ruling that Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (“the VAT Directive”) - Articles 168(a) and 178 (a) together with Article 226(5) - must be interpreted as precluding national legislation, which makes the exercise of the right to deduct input VAT subject to the condition that the address where the issuer of an invoice carries out its economic activity must be indicated on the invoice.

    Categories: European Court of Justice

    Keywords: incomplete invoice, invoice requirements ...
15. 06.07.2017

    ECJ to clarify invoice requirements for deduction of input V ...

    An ECJ advocate general has suggested that the address of the issuer of an invoice must not be identical with the place from where he carries out his economic activity and that any type of address under which the supplier can effectively be contacted is sufficient.

    Categories: From Europe

    Keywords: incomplete invoice, invoice requirements ...
16. 29.06.2017

    VAT grouping and input VAT deduction for holding companies

    Following decisions of the European Court of Justice and the German Supreme Tax Court the Federal Finance Ministry has issued guidelines on the VAT grouping and the input VAT deduction for holding companies. In a special VAT Newsflash our tax experts take a closer look on the situation as a whole.

    Categories: Official Pronouncements

    Keywords: VAT group, holding company, input VAT de ...
17. 04.01.2017

    10 percent threshold for input VAT deduction for private use ...

    The right to deduct input VAT may be excluded only in cases in which the goods acquired are used, to an extent greater than 90%, for purposes other than the taxable person’s business, and not where the goods are used for non-economic purposes (such as: in the course of public activities).

    Categories: Supreme Tax Court cases

    Keywords: private use, input VAT deduction, non-bu ...