Waiver of Tax Exemption for Services in EU with Reverse Charge Procedure – FG Hamburg Case

The waiver of tax exemption for services provided in the rest of the EU, for which the reverse charge procedure applies
The Federal Fiscal Court in Hamburg had to determine whether and under what conditions a “fictional double option” with simultaneous application of the reverse charge procedure in the recipient’s member state does not lead to a deduction of input tax according to § 15 para. 2 sentence 1 no. 2 UStG
The waiver of tax exemption for the mediation of transactions in the deposit business in the rest of the EU leads to the non-application of the input tax deduction according to § 15 para. 2 sentence 1 no. 2 UStG
It must be examined whether the entrepreneur actually treated the transactions in question as taxable abroad and whether the conditions of § 9 UStG for waiving the tax exemption were met (so-called “fictional double taxation”)

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.