News regarding German input VAT deduction for companies established outside of the European Union 💡
The input VAT deduction for VAT entrepreneurs not established in the EU and without qualified VAT registration in Germany (13th VAT Directive procedure) is only possible for selected countries of establishment. The respective countries are listed by the German Ministry of Finance and are updated annually. This year’s update issued on 9 November 2022 includes the Palestinian territories.
Therefore, any companies established in the Palestinian territories are welcomed to deduct German input VAT in the 13th VAT Directive procedure. Please keep in mind, the deadline for the year 2022 is on 30 June 2023 ❗
Source Tim König
