- Value added tax law distinguishes between genuine and non-genuine damages
- Genuine damages are not subject to value added tax, non-genuine damages are
- The key factor is whether a service and consideration are provided in exchange
- Incorrect assessment and invoicing can lead to tax collection or denial of input tax deduction
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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