The repayment of import VAT to the insolvency estate due to an insolvency challenge leads to an input VAT adjustment under § 17(3) sentence 1 UStG. The term “refunded” in this context refers solely to the actual repayment, regardless of whether the original payment was legally justified. The right to deduct input VAT for import VAT only exists if there is a legally enforceable obligation to pay the import VAT. The BFH confirmed that the input VAT deduction must be corrected when the import VAT is refunded to the insolvency estate. The taxpayer’s appeal was unsuccessful in all instances.
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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