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German guidance on VAT adjustments

  • VAT
  • 10 October 2015 | Richard Asquith

German guidance on VAT adjustments

Germany’s Ministry of Finance has provided guidance on the procedures for correcting when too much German VAT been paid.

The new decree, based on a court ruling from the Budesfinanzhof, concerns a transaction when the incorrect tax was paid because of the use of an incorrect VAT rate. The court held that the VAT must first be returned to the customer before an application for a refund from the tax office is processed.

In situations where VAT is incorrectly invoiced by an exempt party, a refund may be applied for by contacting the tax authorities.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.