Input Tax Deduction Allowed in Year Invoice with VAT Is First Issued, Even for Prior Year Services

A foreign-based company that was subject to the general taxation procedure in year 01 and switched back to the refund procedure in year 02 can claim input VAT in year 02 for an invoice relating to a service from year 01, if the invoice with separately stated VAT is first received in year 02. In the case, the plaintiff was a foreign company that made only one taxable sale in Germany in 2018 and was no longer subject to the general taxation procedure from 2019.

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.

---

---