Germany: VAT deduction, business use of imported goods

Germany: VAT deduction, business use of imported goods

A question has been referred by a German court, to the Court of Justice of the European Union (CJEU), concerning German measures that require a 10% business use of imported goods (or intra-EU supply of goods) in order to allow a claim for deduction of value added tax (VAT). The question presented to the CJEU is whether German law that precludes a deduction when there is less than 10% business use of the goods is contrary to EU law.

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Read an August/September 2015 report [PDF 555 KB] prepared by the KPMG member firm in Germany: MwSt. VAT Newsletter (August/September 2015)

 

Other topics discussed in this KPMG report concern:

  • A witness statement is not evidence of an intra-community supply of goods eligible for the 0% VAT (VAT exemption with entitlement to VAT input deduction)
  • A ruling on the proper invoice address for VAT deduction purposes
  • Reverse-charge procedure for construction services, operating facilities as “built structures”
  • Changes in the assessment basis due to a safeguard retention
  • VAT treatment of purchase commitments in auto leasing situations

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