Input Tax Deduction Right: Timing, Invoicing, and No Retroactive Deduction (BFH, 2025)

• The right to deduct input VAT arises when the general taxation procedure applies due to domestic sales.
• This right can still be exercised under the general taxation procedure even if the invoice is received after domestic sales have ceased.
• The initial statement of VAT in a (corrected) invoice does not retroactively entitle the taxpayer to input VAT deduction.
• This distinguishes the case from retroactive invoice corrections.
• Based on BFH ruling of 25.6.2025 (XI R 17/22), published 30.10.2025.

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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