- The German Federal Fiscal Court clarified rules on input VAT adjustment when remuneration is repaid by guarantors.
- A taxpayer made a downpayment for goods not delivered, and a bank guarantor repaid the amount.
- The taxpayer requested an adjustment to the input VAT deduction following the guarantor’s repayment.
- The court’s decision addresses how input VAT should be handled in such repayment situations.
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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