BFH: Foreign Businesses Can Claim Input VAT via Assessment Procedure Despite No Ongoing Domestic Sales

• The BFH ruled that foreign entrepreneurs must claim input tax deduction via the general assessment procedure if they had domestic sales during the input tax period, even if the invoice is received after ceasing domestic activities.
• Input tax cannot be claimed retroactively for periods with domestic sales if the invoice is corrected later; all material requirements, including a proper invoice, must be met first.
• The case was referred back to the lower court for further clarification, especially regarding the calculation of tax amounts and additional invoiced items.
• The decision potentially benefits foreign entrepreneurs by allowing more access to the assessment procedure and longer deadlines for claiming input tax.
• The BFH confirmed that a net invoice cannot be retroactively corrected for input tax deduction by subsequently adding VAT, aligning with a previous ECJ ruling.

Source: ebnerstolz.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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