European Union: The EC Commission refers Germany to the Court for non-compliance with EU VAT rules on VAT refunds

29 January 2019
Germany News2

The Commission has decided to refer the Germany to the European Court of Justice for failure to adhere to certain rules regarding VAT Refunds. Specifically, the Commission alleges that Germany declines to refund VAT where it considers that the information provided on the nature of the goods and services provided is insufficient and fails to ask for additional information. This means that even though the foreign taxpayer/business in question fulfils the substantive requirements of a VAT Refund, the practice of the Germany authorities denies such a business the ability to exercise that right.

It will be interesting to see the outcome of this process, perhaps it will persuade the Germany Tax office to relook at its VAT refund practices.

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