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”)

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.

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