Germany: Ministry of Finance Issues Guidance on VAT Invoices

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The German Ministry of Finance published Letter No. 2024/0129235 online, providing guidance on VAT invoices with incorrect tax amounts issued to end consumers. The guidance, informed by recent case law from the Federal Fiscal Court (BFH) and European Court of Justice (ECJ), clarifies that incorrectly invoiced VAT amounts are not owed if there’s no risk to tax revenue, particularly when services are exclusively provided to end consumers ineligible to deduct input tax.


Additionally, it notes that the ECJ judgment supersedes the Federal Fiscal Court’s ruling from December 13, 2018, in case VR 4/18, specifically regarding VAT amounts inaccurately invoiced to end consumers. However, the ECJ judgment does not extend to incorrect VAT invoices issued to businesses or other scenarios covered under Sec. 14c(2) of the German VAT Act. This guidance applies to all ongoing cases.


Source: bundesfinanzministerium.de

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