- The BFH held that a second VAT adjustment after insolvency (when pre-insolvency receivables are later collected) does not depend on whether the first, favorable adjustment was correctly made.
- In the case, the taxpayer had failed to make the initial adjustment for uncollectible receivables before insolvency, then later treated the collected amounts as a liability of the insolvency estate.
- The tax office refused to retroactively allow the first adjustment, and the BFH agreed that the second, adverse adjustment could still stand.
- Result: missing the first adjustment does not block the second one, which creates a risk of double taxation for insolvency administrators.
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.
