- The Federal Fiscal Court in Hamburg has made a decision regarding the application deadline for the deduction of input tax based on average rates for certain professional groups.
- The court clarified the interpretation of the term “finality of tax assessment” in relation to the provision in § 23 (3) sentence 1 of the German VAT Act.
- The decision is relevant for many old cases and also important for the identical provision in § 19 (2) sentence 1 of the German VAT Act.
- The court ruled that the “finality of tax assessment” refers to the formal legal force of the initial tax assessment, which can also exist in a tax assessment subject to reservation (including a tax return).
- The calculation of input tax based on average rates does not require that the resulting tax amount significantly differs from the amount that would result without the application of average rates.
Source: datenbank.nwb.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.
