Germany: Retroactive effect of invoice correction | KPMG Global
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Germany: Retroactive effect of invoice correction; update of VAT rulings

Germany: Retroactive effect of invoice correction

The German federal tax court (BFH) established a value added tax (VAT) principle, taking into account a judgment of the Court of Justice of the European Union (CJEU) on the retroactive effect of an invoice correction. The BFH expressly affirmed applicability of its established principle on such retroactive effect in similar cases.


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Also, two lower tax courts in Germany addressed questions concerning the retroactive effect of corrected invoices. 

Furthermore, another request for a preliminary ruling of the CJEU was made (case C-533/16 – Volkswagen AG) by a Slovak court. In particular, the court has asked the CJEU whether a trader may carry out the input tax deduction in a VAT refund procedure (RL 2008/9/EC) if the input supply was carried out, but the VAT was not stated in the incoming invoice. Thus, the CJEU again is presented with an opportunity to comment principally on the material and formal requirements of exercising the right to input tax deduction in the general taxation and VAT refund procedure.


Read a March 2017 report prepared by the KPMG member firm in Germany

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