The German Federal Tax Court (BFH) held (V R 13/21) that the taxpayer was not entitled to input value added tax (VAT) deductions for import VAT paid with respect to goods that the taxpayer never actually received.
The BFH found that in order to deduct input VAT on imported items, the imported items be used for the purposes of the taxpayer’s taxed transactions.
Source: KPMG
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