- The plaintiff issued trade credits to customers for goods, which could be redeemed for future services, but on average, 60% of these credits were not redeemed.
- In 2012, two customers corrected their invoices to reflect unredeemed trade credits and applied for a sales tax refund; the tax office also corrected the plaintiff’s input tax for previous years.
- The plaintiff argued that the requirements for input tax correction under Section 17 UStG were not met, as the basis of assessment and original remuneration had not changed.
- The case concerns whether input tax must be adjusted for trade credits that are ultimately not redeemed.
- The Düsseldorf Fiscal Court ruled on the matter, but the decision has been appealed to the Federal Fiscal Court (BFH).
Source: hub.kpmg.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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