Lower Tax Court Hamburg, ruling of 18 December 2020, 5 K 175/18; BFH ref.: VII R 9/21
In the view of the Lower Tax Court Hamburg, a taxpayer who submits a customs declaration as an indirect representative, and whose activities in connection with the importation of goods is limited to taking over the customs formalities, can at best deduct the import VAT they have paid as input VAT if a direct and immediate connection to certain output transactions or to the economic overall activity of the taxpayer can be proved. A potential connection with the overall economic activity is, in the view of the Lower Tax Court Hamburg, superseded in any case by the connection of the import VAT to the specific output transaction of the foreign supplier.
Source KPMG
