- The Munich Fiscal Court ruled that a company can claim import VAT (EUSt) as input tax for goods purchased under EXW (Ex Works) terms from a non-EU country.
- The key criterion is whether the imported goods are used for the company’s business and whether the company has control over the goods at the time of customs clearance.
- Under EXW terms, the buyer typically gains control at the start of shipment, as they bear all transport costs and risks.
- The court found that the buyer (plaintiff) had the necessary control and thus was entitled to deduct the import VAT as input tax.
- The decision clarifies that input tax deduction eligibility depends on who has control over the goods at the relevant time, not just on formal ownership.
Source: awb-international.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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