Because the right to deduct input tax is so important, the tax authorities cannot simply deny the VAT entrepreneur this right. Not even if the entrepreneur has not fully cooperated during a due diligence.
In the years 2012 and 2013, a man carried out activities in the field of information technology. He was also active in game hunting and had a hunting license for an area in Germany. In 2012 and 2013, the man filed quarterly sales tax returns. A tax due of nil was stated in each case with regard to supplies and services. But the man had declared € 8,351 (2012) and € 4,767 (2013) in input tax, so the tax authorities granted him refunds. But during a due diligence, according to the tax authorities, the man was unable to provide sufficient explanation about the claimed input tax. The inspector therefore imposed additional sales tax assessments on the man. The man then lodged an objection and appeal against these additional assessments.