- The German Federal Fiscal Court (BFH) ruled that input VAT deduction can be claimed through the general assessment procedure, even if there are no domestic supplies at the time of receiving the invoice.
- The right to deduct input VAT arises when the supply is received and can be exercised upon receipt of a corrected invoice showing VAT.
- Demurrage charges are classified as transport costs for VAT purposes, not as compensation for damages, and follow the VAT treatment of the principal supply.
- For invoices issued in US dollars, the applicable exchange rate is the one at the time the supply is rendered.
- The decision eases practical obstacles for non-established businesses seeking input VAT refunds in Germany.
Source: kmlz.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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