VAT Correction Claims in Insolvency: Authority and Entitlement Under German Tax Law

• The Cologne Tax Court ruled on the creation and entitlement to VAT correction claims in insolvency proceedings
• When an insolvency administrator decides against including assets from independent professional activities in the insolvency estate, they permanently waive their administration and disposal authority over such new acquisitions
• This waiver includes claims for consent to corrections under tax law for improperly stated VAT amounts on invoices, particularly when the invoice recipient repays input tax after the commercial activity has been released
• The ruling addresses situations where unauthorized tax statements have been included in tax assessments for invoice recipients
• The correction of tax amounts from unauthorized tax statements applies to the period when input tax is being repaid

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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