BMF: The Reemtsma claim – help in the event of a failed input tax deduction?

In a letter dated April 12, 2022, the Federal Ministry of Finance commented on the ECJ ruling of March 15, 2007 on the so-called direct claim (“Reemtsma claim”). Under certain conditions, this grants beneficiaries a pre-tax refund claim from the tax office. However, the BMF severely restricts this claim. Union law is likely to conflict with this narrow understanding of the Reemtsma claim.

Source KMLZ

See also ECJ cases – C-35/05 (Reemtsma Cigarettenfabriken) – No refund of VAT via 8th VAT Directive if not legally due