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... at least as long as you do not drive a bitch.

Sales tax: BFH makes it easier for companies to deduct input tax invoices.

Judgment of June 21.6.2018, 25 VR 15/XNUMX

Judgment of June 21.6.2018, 28 VR 16/XNUMX

For the deduction of input tax, an invoice must contain an address of the service provider under which it can be reached by post. As the Federal Finance Court (BFH), abandoning its previous case law with judgments from the 21. June 2018 VR 25 / 15 and VR 28 / 16, it is no longer necessary for the bill to further specify a place where the performing entrepreneur operates.

In the case of value added tax, the input tax deduction from the remuneration of other contractors requires an invoice which specifies the complete address of the performing entrepreneur (§ 15 para. 1 No. 1 sentence 2 in conjunction with § 14 para. 4 sentence 1 no. 1 of VAT Act).

In the first case (VR 25 / 15), the plaintiff, a car dealer, purchased motor vehicles from a sole trader who was active in the online trade without operating a car dealership. He gave the plaintiff bills in which he gave as his address a place where he was reachable by mail.

In the second case (VR 28 / 16), the applicant, as an entrepreneur, purchased 200 tons of steel scrap from a GmbH in nine individual deliveries. In the invoices the seat of the GmbH was specified according to the commercial register entry as address. In fact, there were the premises of a law firm there. The landline and fax numbers used by the GmbH for the correspondence belonged to the law firm, which served as the domicile address for some 15 to 20 companies. A desk in the office was occasionally used by a member of the GmbH.

The BFH affirmed in both cases the input tax deduction with proper invoices.

For the indication of the "full address" of the performing entrepreneur, the indication of a place with "postal accessibility" is sufficient.

The change of jurisdiction is based on the judgment of the European Court of Justice Geissel and Butin of the 15. November 2017 C 374 / 16 and C 375 / 16, EU: C: 2017: 867, which was submitted on presentation by the BFH.

The change of jurisdiction is of great importance to entrepreneurs who are entitled to deduct VAT on their business activities. The question as to whether proper invoices are available when claiming the input tax deduction is regularly the subject of disputes in external audits. The new judgments of the BFH make it easier to claim the input tax deduction.

Source: https://juris.bundesfinanzhof.de/cgi-bin/rechtsprechung/document.py?Gericht=bfh&Art=en&Datum=Aktuell&nr=37354

Also read: Is a virtual office or the use of a summonable business address accepted by the tax office?

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