Focus on recent decisions on German procedural and litigation law

• The Federal Fiscal Court (BFH) ruled on whether the tax authorities issued a partial or full decision on appeal regarding the treatment of input VAT deduction and taxation of output transactions.
• The decision on appeal only addressed the input VAT deduction, and the tax authorities did not issue a separate partial remedial notice for the taxation of output transactions.
• The plaintiff only objected to the point in dispute in the decision on appeal, leading to the second issue acquiring legal force.
• The BFH interpreted the decision as comprehensive, and plaintiffs should carefully check the scope of the decision and object to it entirely if in doubt.

Source KMLZ

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