The Federal Ministry of Finance issued a draft letter on the non-objection rule in the B2B sector demanded by the businesses.
While the letter confirms that the application of an incorrect (too high) VAT rate results in unduly charged VAT, the input VAT deduction should still be granted in full for practical reasons. An invoice correction should not be necessary. However, this only applies to supplies rendered in July 2020. This gives businesses one additional month for the necessary changes.
Source
See also
BMF issued draft transitional guidelines
Latest Posts in "Germany"
- Germany Mandates Electronic B2B Invoicing by 2028 with Phased Implementation
- Germany to Introduce 7% VAT Rate for Restaurants from 2026
- German Federal Tax Court Rules on Double RETT Assessment in Share Deal Transactions
- VAT Exemption for Care Services Financed Through Personal Budgets Under German Law
- New VAT Classification for Online Event Services Under German Tax Law