- Previously, an entrepreneur was required to pay the incorrectly high amount of VAT in a invoice, regardless of whether the recipient was a business or non-business entity
- A recent ruling by the EU Court of Justice changes the treatment of VAT overcharges in invoices to end consumers
- The German tax authorities have adjusted their regulations in response to this ruling
- The ruling applies to situations where a service is incorrectly charged at a higher VAT rate to end consumers
- The ruling does not apply to invoices issued to businesses for their business activities
- In cases where services are provided to both end consumers and businesses, the ruling only applies to end consumers
- The entrepreneur is required to provide evidence to support their VAT claims
Source: pkf-issing.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.
Latest Posts in "Austria"
- ECJ Rules No VAT Liability for Incorrect Rates Charged to Non-Taxable Consumers
- Tax Implications of Hobby in Castle Leasing and Management Under § 2 Abs 5 Z 2 UStG
- VAT Refund for Foreign Entrepreneurs on Austrian Real Estate Services
- Hobby Horse Breeding and Boarding: Tax Implications and Profitability Assessment Changes
- Input Tax Deduction for Test Vehicles Used Exclusively for Development Purposes
