Taxation of Plant-Based Milk Alternatives: FG Baden-Württemberg Decision and Potential Legislative Changes

• BFH requested a preliminary ruling from the ECJ on the issue of a direct claim in cases of incorrectly invoiced and paid German VAT in the event of insolvency
• The BFH asked the ECJ to clarify whether the domestic claim for reimbursement only applies to national tax already paid or if it also includes VAT from the member state where the tax was actually incurred
• The BFH submitted questions to the ECJ regarding the interpretation of the VAT law, specifically on whether a recipient of services has a direct claim against the tax authorities in cases where the service was provided in another member state and the provider is insolvent
• The case involves sale-and-lease-back transactions with a domestic company where VAT was incorrectly invoiced despite the service being provided in Italy
• The court has doubts about the existence of a direct claim in this case and considers the potential impact of special circumstances on the transferability of ECJ case law
• The outcome of the case depends on the answers to the questions submitted, with a possible direct claim potentially supporting the plaintiff’s case.

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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