Lower Tax Court Hamburg, ruling of 18 December 2020, 5 K 175/18; BFH ref.: VII R 9/21
In the view of the Lower Tax Court Hamburg, a taxpayer who submits a customs declaration as an indirect representative, and whose activities in connection with the importation of goods is limited to taking over the customs formalities, can at best deduct the import VAT they have paid as input VAT if a direct and immediate connection to certain output transactions or to the economic overall activity of the taxpayer can be proved. A potential connection with the overall economic activity is, in the view of the Lower Tax Court Hamburg, superseded in any case by the connection of the import VAT to the specific output transaction of the foreign supplier.
Source KPMG
Latest Posts in "Germany"
- Germany Seeks Clear VAT and Transfer Pricing Rules: Advocate General’s Push for Classification
- Legal Remedies for VAT Inspection: What Are Your Options?
- Central Customs Clearance: The New Section 21b UStG and Its Special Provisions from 2026
- Reduced VAT Rate for Nonprofit Integration Projects: Legal Assessment and Competitive Implications
- VAT Implications for Amazon Vine Participants: Reviews in Exchange for Test Products
