Current VAT Update 03/2024: Clarification on Incorrect VAT Disclosure in Consumer Transactions

• § 14c UStG requires a business to pay the excess VAT if it is incorrectly stated on an invoice
• Recent EU court ruling stated that the excess VAT is not owed if the recipient is a non-taxable end consumer
• The German tax authority has adopted this ruling in their guidelines
• The ruling does not apply if the recipient is a business, even if they are not eligible for input tax deduction
• The issuer of the invoice must correct the VAT amount if it is incorrectly stated for a business recipient
• The type of recipient (business or end consumer) must be clearly documented by the service provider
• The ruling does not apply to cases of incorrectly stated VAT without actual service provision by a non-business entity.

Source: umsatz-steuer-beratung.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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