- The German Federal Court of Justice (BGH) held that, when calculating the tax evasion amount in a VAT case involving failure to file returns, unclaimed input VAT may be taken into account if there is a direct and immediate link between the input and output transactions; the compensation ban in Section 370(4) sentence 3 AO does not automatically exclude it.
- The court emphasized that such a direct connection cannot simply be presumed absent; it must be examined on the facts of the case.
- The decision also addressed confiscation under Section 73(1) StGB in cases where VAT was evaded for the benefit of a corporation.
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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