- Starting from 1 January 2028, new rules will apply to the timing of input VAT deductions
- These changes are in response to the CJEU ruling C-9/20
- There will be different timings for input VAT deductions based on the type of invoice
- For invoices from traders taxed on receipts, the deduction will occur at the time of supply execution
- For invoices from traders using cash accounting, the deduction will occur at the time of payment
- For advance payment invoices, the deduction will also be made at the time of payment
Source: hub.kpmg.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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