- The German Federal Fiscal Court clarified input VAT adjustment rules when remuneration is repaid by guarantors.
- Repayment by a bank guarantor triggers a partial correction of the input VAT deduction.
- Even if the guarantee covers only the net amount, the repaid sum must be split into net remuneration and VAT.
- Input VAT must be adjusted when the assessment basis changes due to nonperformance and repayment.
Source: news.bloombergtax.com
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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