From now on, the German tax authorities will allow shareholders and pre-incorporated companies to deduct input VAT from purchases that subsequently accrue to a company outside of a taxable supply. In its letter of 12 April 2022, the German Federal Ministry of Finance sets out the requirements for the deduction of input VAT and refers to the relevant case law of the ECJ and the German Federal Fiscal Court, that was issued some time ago. According to this, the purchased supply must be transferable to the company and lead to a (planned) investment transaction for the company. In practice, this leads to complex delimitation issues.
Source: kmlz.de
Latest Posts in "Germany"
- Germany: Warehouse Deliveries Not VAT-Exempt; Key Recent VAT Developments for Businesses
- Deutsche Fiskal Announces FCC 4.4.0 Release, Mandatory Updates, and Customer Webinar for February 2026
- Overview of 2025 VAT Conversion Rates Published Monthly Under §16(6) UStG
- E-Invoicing in Germany and Europe: Key Actions for Businesses in 2026
- New Customs Office Jurisdiction Regulation and EU-MERCOSUR Agreement: Key Changes and Legal Review
