BFH, ruling of 24 February 2021, XI R 15/19
The German Federal Tax Court (BFH) has ruled on the VAT payment of a supply of goods with “0% financing”.
In this case the supplying trader bears the costs for the financing of the purchase price by a bank in such a way that the bank, in the course of paying out loan amounts to the trader, retains the interest, and the customer pays the purchase price to the bank in installments. The BFH concludes that the interest retained does not reduce the payment for the trader’s supply of goods to the customer, even if the trader states in the invoice to the customer that they are granting the customer a discount in the amount of the interest.
Source KPMG
Latest Posts in "Germany"
- Germany: RTC Suite E-Invoicing and Invoice Intelligence on SAP Store
- Germany: Financial Integration in VAT Organschaft with Qualified Majority Rules
- Germany: BFH Follows ECJ on VAT Split Rule for Hotel Revenues
- Germany: Proposed Offset Model for Import VAT to Start in 2030
- Germany: VAT Deduction Denied for Invoice Naming Nonexistent Supplier
