Germany loses VAT recovery case at ECJ

  • Nov 26, 2020 | Richard Asquith

Germany has lost an important VAT recovery case at the European Court of Justice. The EU court of last resort held that foreign companies should be allowed to submit German VAT reclaims initially without supporting invoices without losing their rights for repayment.

The case concerned a claim to recover VAT on German expenses by a non-resident business. The company submitted their recover claim on time. However, they were only able to send supporting invoices after the filing deadline. The German federal tax administration struck down their claim.

However, on appeal to the ECJ, it held the German view violated the principle of VAT neutrality, denying foreign businesses of their right to recover VAT they are entitled to. German is one of the most complex countries for foreign VAT reclaims, with a high rejection rate.


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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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