Direct VAT Refund Claim by Recipient in Supplier Insolvency Approved by Baden-Württemberg Tax Court

In cases where VAT was wrongly invoiced and paid, the recipient can immediately and fully claim the excess VAT from the tax office if the supplier is insolvent, without first registering the claim in the insolvency proceedings. This ensures VAT neutrality, as the recipient paid VAT that was not actually owed but was remitted to the tax authorities. The court ruled in favor of the claimant, granting the right to a VAT refund on grounds of equity, as the tax office’s discretion was reduced to zero.

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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