VAT Adjustment for Subsidiary after Successful Insolvency Challenge

• Complex issues arise at the intersection of VAT and insolvency law
• Questions arise regarding the VAT adjustment claim after a successful challenge by the insolvency administrator
• Two main questions: who can claim the VAT adjustment and is it considered a mass liability under insolvency law?
• The VAT deduction must be adjusted for the subsidiary if the payment is successfully challenged by the parent company
• The VAT adjustment claim is not considered a mass liability under insolvency law
• Other mass liabilities may arise through the administration, realization, and distribution of the insolvency estate

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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