- Advance payment invoices generally entitle the payer to input tax deduction under § 15 Abs. 1 Satz 1 Nr. 3 UStG, even if no service has yet been received.
- This right applies unless it is clear from the outset that the service provider never intended to perform the agreed service (i.e., in cases of fraud).
- An advance payment invoice qualifies for input tax deduction even without an explicit “prepayment” note, as long as it is clear the payment is for a future service.
- The recipient must believe at the time of payment that they are paying for a future service to claim the input tax deduction.
- The case involved a company participating in a model where photovoltaic systems were sold and then leased to a third party.
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.
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