A claim for deduction of input value added tax (VAT) requires—among other things—an invoice that satisfies certain formal requirements of German VAT law.
Up to now, the tax authorities and the German Federal Tax Court (BFH) have conditioned the ability to deduct input VAT as dependent on the address provided on the invoice as the location where the issuer of the invoice conducts or carries out the economic activity.
In two decisions from June 2018, the BFH has changed its position and decided in favor of the contractor. According to the BFH decisions, any type of address (including a post office box address) is sufficient as long as the contractor is contactable at this address. The BFH reached this determination based on a 2017 judgment of the CJEU.
Other recent VAT developments that may affect businesses in Germany include the following items:
Read an August / September 2018 report [PDF 291 KB] prepared by the KPMG member firm in Germany.
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