VAT deduction when switching from average rate taxation to regular taxation BFH, judgment of 12.7.2023

• The case involves the question of whether a flat-rate farmer can claim input tax deduction for goods used for taxable supplies when switching from the flat-rate taxation to regular taxation.
• The application of the flat-rate taxation has been limited to businesses with a total turnover of less than €600,000 since January 1, 2022.
• The question arises whether input tax deduction is excluded for goods acquired during the flat-rate taxation period but used for taxable supplies after switching to regular taxation.
• The Federal Fiscal Court (BFH) has ruled on this matter.

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.

---

---