VAT Deduction in Vehicle Trade: FG Nürnberg Ruling on Economic Integration and Control

• The FG Nürnberg ruled that input tax deduction from vehicle deliveries requires the recipient to have actual control over the goods.
• Merely handling formalities for intra-community delivery does not suffice for input tax deduction.
• The court examined the requirements for a VAT group, focusing on economic integration.
• Net invoicing agreements are similar to interim financing, where two civil law purchase contracts are treated as a single service for VAT purposes.
• The good or bad faith of the person claiming input tax is irrelevant; they must prove the conditions for 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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