- The German Federal Fiscal Court ruled that input VAT on advertising services cannot be deducted in Germany if the services are not supplied for the needs of a German fixed establishment.
- The advertising services promoted hotel bookings concluded only by the non-EU head office, not the German office.
- The place of supply was outside Germany, so VAT on the invoices was not legally due in Germany and could not be deducted.
- The Court stressed that the key factor is where the services are actually used, which in this case was the non-EU head office.
Source: globalvatcompliance.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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