BFH: No VAT Liability for Incorrect Invoice if Tax Revenue Risk Already Eliminated

• The BFH ruled that the plaintiff, a metal construction contractor, was wrongly held liable for VAT shown on an invoice under Section 14c (1) UStG when the risk to tax revenue had already been eliminated.
• The case involved incorrect VAT statements on invoices for steel construction work, which were later corrected, and the correct input tax deduction was made.
• According to EU law and the VAT Directive, VAT is only owed if there is a risk to tax revenue; if this risk is eliminated, the additional VAT is not owed.
• The correction of an unjustified tax statement takes effect when the risk to tax revenue is eliminated, not when the correction is requested or the invoice is corrected.
• Denying reimbursement of VAT paid without legal basis, when there is no risk to tax revenue, would violate the principle of VAT neutrality.

Source: kpmg.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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