- The German VAT law requires that imported goods be used for taxable transactions in order for the VAT to be deductible.
- The taxpayer in this case, a GmbH, acted as an indirect customs representative for goods imported from Turkey.
- The goods were not delivered to the intended recipient in Germany, so the taxpayer waived the fee for their services.
- The taxpayer claimed the VAT as input tax in their VAT return, but the tax authority denied the deduction.
- The tax court upheld the denial, stating that the taxpayer did not use the imported goods for taxable transactions.
- The Federal Fiscal Court confirmed the decision, stating that the taxpayer only provided customs and transportation services and did not use the goods themselves.
- The court also stated that the value of the imported goods must be included in the price of the taxpayer’s services in order for the VAT to be deductible.
- The court did not refer the case to the European Court of Justice for a preliminary ruling.
Source: haufe.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
