Input tax adjustment according to § 17 UStG in three-party relationship as mass liability (BFH)

– The input text discusses the adjustment of input tax deduction according to § 17 UStG in a three-party relationship as a mass liability.
– The input tax deduction must be adjusted if the supplier repays a previously received consideration because a third party paid the consideration and its insolvency administrator successfully contested the payment, and at the time of repayment, the insolvency proceedings have been opened against the recipient of the supply.
– The right to adjust the input tax deduction is not a mass liability within the meaning of § 55 Abs. 1 Nr. 1 InsO in the insolvency proceedings of the recipient of the supply.
– Therefore, the right to adjust the input tax deduction cannot be asserted against the insolvency administrator through a tax assessment notice (BFH, judgment of August 24, 2023 – V R 29/21; published on January 11, 2024).
– The case involves the plaintiff, who is the insolvency administrator of A GmbH, which is part of a larger group.

Source: datenbank.nwb.de

 

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