Timing of Receipt in Case of Transfers: Commentary on 06.11.2023 BFH Decision

• The timing of receipt of payments in the case of transfers is determined by the credit to the recipient’s account, even if the value date is earlier.
• The tax for supplies and other services is due at the end of the reporting period in which the payments are received.
• In a specific case, the taxpayer argued that the payment was received in the previous year due to a retroactive value date, but the court ruled that the payment was not received until it was available on the recipient’s account.
• The court distinguished between the credit, value date, and availability of funds in the case of transfers.
• The court held that the availability of funds on the recipient’s account is the determining factor for receipt of payment.
• The court rejected the argument that the value date should be considered the receipt date based on banking regulations.
• The court referred to the relevant provisions of the German Civil Code regarding the value date and availability of funds in transfers.
• The court concluded that the payment was not received in the previous year and upheld the lower court’s decision.
• The court also rejected the argument that banking regulations should determine the receipt date.

Source: haufe.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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