Bank’s full input VAT deduction for paydirekt and giropay related services allowed by FG Münster

• FG Münster ruled that a bank is entitled to full input tax deduction related to the payment system “paydirekt”
• The bank intended to make taxable supplies with online merchants using the paydirekt system
• The court emphasized that the intention at the time of receiving the services is crucial for input tax deduction
• The delay in implementing merchant fees does not affect the bank’s intention at the time of receiving the services

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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