- BFH ruled that marketing services bought by a German liaison office for a hotel operator based in Mauritius were not supplied in Germany.
- The services were attributed to the head office in the third country, not to the German fixed establishment.
- Because the place of supply was outside Germany, the VAT charged was not “legally owed” in Germany.
- As a result, the company could not claim input VAT deduction in Germany.
- The decision turned on the fact that the services were for the head office’s economic activity, not for the needs of the German liaison office.
Source: assets.kpmg.com
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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