Germany: Input VAT deduction, timing of supply | KPMG | BE
close
Share with your friends

Germany: Input VAT deduction, court decision on timing of supply

Germany: Input VAT deduction, timing of supply

The German Federal Tax Court (BFH) issued a judgment in a case concerning the input value added tax (VAT) deduction when the invoice did not provide specific details about the time of the supply.

1000

Related content

According to German VAT law, a proper invoice must contain details on the time of the supply of goods or other services. In this respect, an invoice that lists the calendar month is deemed to be sufficient (see § 31 (4) German VAT operating regulation (UStDV)).

According to the BFH in its judgment in case V R 18/17 (1 March 2018), information about the month at the time of supply can be inferred from the date of issuance of the invoice, if the circumstances of the transaction allow one to assume that the supply was effected in the month when the invoice was issued. The BFH followed this approach, and held that the tax authorities cannot limit themselves to merely examining the invoice but must also take into consideration additional information provided by the taxpayer. This approach is further supported by a judgment of the Court of Justice of the European Union (CJEU) in Barlis 06,  C-516/14 (15 September 2016). 

Other VAT developments

Recent VAT developments that may affect businesses in Germany include the following items:

  • Proposal on VAT reform in the EU, effective 1 July 2022 (European Commission, press release of 25 May 2018, IP/18/3834)
  • Proposal for combatting VAT fraud in Germany, effective 1 January 2019 (Baden-Württemberg State Ministry Newsletter of 25 May 2018)
  • Input tax deduction and correction in the case of non-performance of supply (CJEU, ruling of 31 May 2018 – joint cases C-660/16 ‒ Kollroß and C-661/16 ‒ Wirtl)
  • Reverse charge procedure – handling of advance payment (BMF, guidance of 18 May 2018 ‒ III C 3 ‒ S 7279/11/10002-10)
  • Place of receipt of supply ‒ condition for a fixed establishment (Lower Tax Court of Berlin-Brandenburg, ruling of 6 July 2017, 5 K 5270/15; BFH ref. no. XI R 1/18)

 

Read a June 2018 report [PDF 312 KB] prepared by the KPMG member firm in Germany.

 

For more information, contact a tax professional in Germany:

Christoph Jünger | +49 69 9587-2036 | cjuenger@kpmg.com

© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit