- A Düsseldorf tax court decision prompts a closer look at VAT issues in assignment of receivables and factoring, especially risks affecting input tax deduction.
- Under EU case law, factoring is VAT-relevant mainly based on whether the factor relieves the supplier from collecting the receivables.
- This applies regardless of whether the factoring is “true” or “false.”
- The fee structure does not determine the VAT treatment.
- A 2025 ECJ ruling in a Finnish case reaffirmed these principles.
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.
