Invoices, self-billing invoices and invoice correction

» Invoices, self-billing invoices and invoice correction

Invoices or self-billing invoices are issued for almost every transaction in economic life. They play a central role in VAT law, particularly with regard to input VAT deduction. According to sec. 15 para. 1 sentence 1 no. 1 of the German VAT Act, taxable persons are entitled to deduct the VAT charged to them from their own VAT liability. This makes VAT a neutral element within the B2B sector, which is why we speak of the principle of VAT neutrality. Against this background, it is consistent that both the legislator and the tax authorities impose detailed requirements for the content, issuance, correction, and archiving of invoices. Sec. 14 of the German VAT Act forms the central legal basis for this. It defines the term "invoice", regulates the obligation to issue invoices, stipulates requirements regarding form and content, and refers to supplementary provisions in sec. 14a to 14c of the German VAT Act for special cases. These regulations implement provisions of the EU VAT Directive.

In light of the introduction of mandatory national e-invoicing in the B2B sector in Germany which commenced on 1 January 2025, and the increasing digitalization of VAT compliance processes, the topic of "invoicing" currently holds particular practical relevance – for companies of all sizes, in all industries. Until now, there were no specific format requirements for invoices. Any billing document could in general qualify as an invoice within the meaning of the German VAT Act. This will change with the introduction of the e-invoicing obligation. Only invoices consisting of a structured data set will be considered e-invoices, which need to be used by most German businesses after the transitional periode. Previously common types of “electronic invoices” – such as PDF invoices or EDI invoices that do not comply with the CEN standard EN 16931 – will no longer qualify as e-invoices. In Germany, the two main e-invoice formats used are XRechnung and ZUGFeRD, both of which meet the requirements of the CEN standard. Further changes are expected in connection with the "VAT in the Digital Age" (ViDA) initiative.

1. What is an invoice?

The German VAT Act distinguishes between different definitions of an invoice. According to sec. 14 para. 1 sentence 1 of the German VAT Act, an invoice is defined as “any document used to account for a supply of goods or a supply of services“. This is referred to as the “simple“ definition of an invoice. For the purpose of input VAT deduction, however, the possession of an invoice issued in accordance with sec. 14 and 14a of the German VAT Act is generally required, (commonly referred to as the “qualified“ definition of an invoice), as stated in sec. 15 para. 1 sentence 1 no. 1 sentence 2 of the German VAT Act.

A contract may also qualify as an invoice – provided it contains all mandatory information as required by sec. 14 para. 4 of the German VAT Act or refers to supplementary documents that include the missing details (sec. 31 para. 1 of the German VAT Implementation Code). For example, a rental, lease or maintenance agreement can be considered an invoice if the necessary information – such as the supply period and remuneration – can be derived from the contract itself or from related payment documents (e.g., bank transfer slips). It is crucial that the VAT shown in the contract is presented clearly, unambiguously, and unconditionally. Any ambiguity – such as an optional choice between taxable and VAT exempt treatment – precludes recognition of the document as an invoice (cf. sec. 14.1. para. 2 of the German Administration VAT Guidelines).

However, for mandatory electronic invoices, all required information must be included in the structured data section of the e-invoice (sec. 14 para. 1 sentence 3 of the German VAT Act, sec. 31 para. 1 of the German VAT Implementation Code). Supplementary information may be attached to the e-invoice but may not replace mandatory content. Hyperlinks included in the invoice do not meet these requirements. The underlying contract may only be included as supplementary information in an attachment to the e-invoice (Letter of the German Federal Ministry of Finance dated 15 October 2024, III C 2 - S 7287 – a/23/10001:007; Federal Tax Gazette I 2024, p. 1320, paras. 35, 44).

2. What information must an invoice contain?

An invoice must include the details listed in sec. 14 para. 4 of the German VAT Act (known as mandatory invoice details).

mandatory invoice details Sec. 14 para. 4 German VAT Act, description in text

Accordingly, an invoice must contain:

Full name and address of the supplying taxable person and the recipient
Tax number or VAT-ID of the supplying taxable person
Invoice date and a sequential invoice number
Specification of the goods or services (scope and type of service, for "customary trade description" see KMLZ Newsletter 41/2021: Invoices: Federal Ministry of Finance on requirement of „customary trade description“) and the time of the supply
Remuneration and any pre-agreed reduction of the remuneration, the VAT amount attributable to it (or a reference to VAT exemption), and the applicable VAT rate
In certain cases, a note regarding the recipient’s obligation to retain the invoice
The term “self-billing invoice“, if the invoice is issued by the recipient of the supply

Simplified invoicing requirements apply to small-value invoices up to EUR 250 (sec. 33 of the German VAT Implementation Code).

3. What is the significance of the invoice in VAT law?

Output side

Anyone who provides a supply is generally entitled to issue an invoice for it (sec. 14 para. 2 sentence 1 of the German VAT Act). The invoice documents the supply relationship, serves as evidence of the tax liability arising, and forms the basis for the chargeable VAT. It thus fulfills a verification and documentation function, vis-à-vis the tax office. In certain cases, the law even requires the supplying taxable person to issue an invoice: This obligation applies, in particular, when taxable supplies of goods or services are made to another taxable person for their business or to a legal entity (sec. 14 para. 2 sentence 2 nos. 1 and 2 of the German VAT Act). In such cases, the invoice must be issued within six months of the supply. The same applies to taxable supplies of goods including installation or supplies of services related to real estate – even if the recipient is not a taxable person (sec. 14 para. 2 sentence 2 no. 3 of the German VAT Act).

Input side

For the recipient, possession of a proper invoice is generally required in order to claim input VAT deduction. This requirement applies only to supplies of goods or services that are taxable within Germany (sec. 15 para. 1 sentence 1 no. 1 of the German VAT Act). Input VAT deduction can only be claimed in the tax period in which both the supply has been made and an invoice containing all required information (as listed above) is available. (See also section 5 below regarding the handling of missing or incorrect invoice details.) If the supply and receipt of the invoice occur in different tax periods, input VAT can only be claimed in the tax period in which both conditions are first met (sec. 15.2. para. 2 sentence 6 of the German Administrative VAT Guidelines).

Down payments may also entitle the recipient to input VAT deduction (sec. 15 para. 1 sentence 1 no. 1 sentence 3 of the German VAT Act). In addition to having a proper down payment invoice (see sec. 14.8. para. 4 of the German Administrative VAT Guidelines), the payment must actually have been made (sec. 15.3. para. 1 sentence 1 of the German Administrative VAT Guidelines). The down payment invoice must clearly indicate that it accounts for payment(s) made prior to the supply of goods or services – for example, by specifying the expected time of the supply (sec. 14.8. para. 1 sentence 1 of the German Administrative VAT Guidelines).

No invoice is required for input VAT deduction in cases where the recipient is liable for the VAT under sec. 13b of the German VAT Act. In such cases, the recipient is liable to pay VAT and may also claim input VAT, provided all other conditions are met (sec. 15 para. 1 sentence 1 no. 4 of the German VAT Act). Input VAT deduction is therefore possible, even without an invoice (sec. 13b.15. para. 2, 3 of the German Administrative VAT Guidelines)

4. What is a self-billing invoice in the context of VAT law?

In VAT law, a self-billing invoice refers to an invoice that is not issued by the supplier, but by the recipient (sec. 14 para. 2 sentence 5 of the German VAT Act). A prior agreement between the parties is a prerequisite. The invoice must be explicitly designated as a “self-billing invoice“ (sec. 14.5. para. 24 of the German Administrative VAT Guidelines). If the term “self-billing invoice“ is missing, the document is generally not considered a proper invoice. The same mandatory information applies to “regular“ invoices.

It is important to note that the recipient of a self-billing invoice – i.e., the supplier – can object to it, regardless of whether it is formally correct (sec. 14.3. para. 4 sentence 3 of the German Administrative VAT Guidelines; German Federal Fiscal Court (BFH), judgment of 23 January 2013, XI R 25/11, Federal Tax Gazette II p. 417). An objection causes the self-billing invoice to lose its function as an invoice, but without retroactive effect (ex nunc) (sec. 14 para. 2 sentence 6 of the German VAT Act; sec. 14.3. para. 4 sentence 5 of the German Administrative VAT Guidelines). As a result, the invoice issuer - i.e., the recipient – can no longer claim input VAT, provided they were entitled to it in the first place. If the self-billing invoice included a VAT amount under sec. 14c of the German VAT Act, input VAT deduction is, in any case, excluded.

An objection may also eliminate the VAT liability of the recipient of the self-billing invoice under sec. 14c of the German VAT Act ex nunc, if the invoice was issued with an incorrect (too high) VAT rate.

Special rules apply to self-billing invoices issued to non-taxable persons. If a self-billing invoice contains VAT, even though the recipient of the invoice (i.e., the supplier) is not a taxable person or has not provided any supply, they are still liable for the stated VAT – unless they object, without delay. (sec. 14c para. 2 sentence 2 no. 2 of the German VAT Act; Letter of the German Federal Ministry of Finance dated 08 July 2025, III C 2 – S 7295/00005/003/080)

5. What are the consequences of an incorrect invoice?

In practice, it is not uncommon for certain details to be missing, incomplete, or incorrect on an invoice – or for the invoice to be missing entirely.

5.1 Can Input VAT be claimed despite an incorrect or missing invoice?

As a rule, input VAT deduction requires possession of a proper invoice. However, in the case Barlis 06 (judgment of 15 September 2016 – C-516/14), the ECJ ruled that input VAT deduction must not be denied solely due to formal deficiencies in an invoice – provided the tax authorities have all the necessary information to verify the substantive conditions for input VAT deduction (see KMLZ Newsletter 37/2021: ECJ: Input VAT deduction only with invoice but without need for minimum mandatory information?). In its case Vădan (judgment of 21 November 2018 – C-664/16), the ECJ further emphasized that strict application of the invoice requirement may violate the principles of VAT neutrality and proportionality if the substantive conditions for input VAT deduction can be objectively proven – even in the absence of a formally correct invoice (see KMLZ Newsletter 50/2018: ECJ: Invoices not mandatory for input VAT deduction).

5.2 Can an incorrect invoice be corrected?

An incorrect invoice can be corrected if it was previously issued at least once – even if it contained incorrect or incomplete information (sec. 14 para. 6 no. 5 of the German VAT Act in conjunction with sec. 31 para. 5 of the German VAT Implementation Code). A prerequisite for a valid correction is the existence of a document that is eligible for correction. If no such invoice exists, a mere correction is not possible – a new invoice must be issued instead. (See KMLZ Newsletter 43/2022: German Federal Fiscal Court: Invoice without correct VAT amount cannot be amended with retroactive effect and 49/2020: Federal Ministry of Finance letter on retroactive effect of invoice correction and deduction of input VAT without a proper invoice)

5.3 What types of invoice corrections exist?

There are generally two permissible methods for correcting an invoice. One option is to cancel the original incorrect invoice and issue a new, correct one (sec. 15.2a para. 7 sentence 3 of the German Administrative VAT Guidelines). The second alternative is to issue a supplementary document. In this case, the original invoice is supplemented by an additional document that clearly refers to it – for example, by stating the original invoice number (sec. 14.11 para. 1 sentences 4 and 5 of the German Administrative VAT Guidelines). The supplementary document must contain all of the missing information and meet the formal requirements of secs. 14 and 14a of the German VAT Act (sec. 14.11. para. 1 sentence 6 of the German Administrative VAT Guidelines).

Corrections are also possible in the context of self-billing invoices. Missing or incorrect details – such as an incorrect VAT rate – can be corrected either by a supplementary document or by the recipient of the supply reissuing the self-billing invoice.

5.4 What is the temporal effect of an invoice correction?

Since the ECJ ruling in the case Senatex (judgment of 15 September 2016, C-518/14), it is recognized that an invoice correction can have retroactive effect to the date of the originally issued invoice (see KMLZ Newsletter 27/2016: Invoice correction with retroactive effect! und 01/2017: Federal Fiscal Court acknowledges invoice corrections with retroactive effect for the implementation by the German Federal Fiscal Court). This means that input VAT deduction is (retroactively) possible for the original period of supply (see with regard to the distinction in the case of triangulations and the absence of retroactive effect KMLZ Newsletter 56/2022: ECJ on invoice correction in case of “unsuccessful” triangulations). However, this requires that the original invoice contained the minimum information – including supplier, recipient, remuneration, description of the supply, and VAT – i.e., that it was eligible for correction (sec. 15.2a. para. 7 of the German Administrative VAT Guidelines). It remains unclear whether this view is fully supported by EU law. Later, the German Federal Fiscal Court clarified that an invoice correction also applies retroactively, even if it disadvantages the recipient – for example, in cases of mutual cancellation and reissuance of the invoice with a VAT refund (see sec. 15.2a. para. 7 sentences 3, 4 of the German Administrative VAT Guidelines and KMLZ Newsletter 22/2020: Federal Fiscal Court: Correction of an Invoice – Retroactive Effect to the Detriment of the Recipient). By contrast, a correction has no retroactive effect if the original invoice does not contain the mandatory invoice details or if the information is so vague, incomplete, or obviously incorrect that it is equivalent to missing information (sec. 15.2a. para. 7 sentences 6–8 of the German Administrative VAT Guidelines). In such cases, the correction only applies from the date of correction onward.

Since the ECJ ruling in the case Senatex (judgment of 15 September 2016, C-518/14), it is recognized that an invoice correction can have retroactive effect to the date of the originally issued invoice (see KMLZ Newsletter 27/2016: Invoice correction with retroactive effect! und 01/2017: Federal Fiscal Court acknowledges invoice corrections with retroactive effect for the implementation by the German Federal Fiscal Court). This means that input VAT deduction is (retroactively) possible for the original period of supply (see with regard to the distinction in the case of triangulations and the absence of retroactive effect KMLZ Newsletter 56/2022: ECJ on invoice correction in case of “unsuccessful” triangulations). However, this requires that the original invoice contained the minimum information – including supplier, recipient, remuneration, description of the supply, and VAT – i.e., that it was eligible for correction (sec. 15.2a. para. 7 of the German Administrative VAT Guidelines). It remains unclear whether this view is fully supported by EU law. Later, the German Federal Fiscal Court clarified that an invoice correction also applies retroactively, even if it disadvantages the recipient – for example, in cases of mutual cancellation and reissuance of the invoice with a VAT refund (see sec. 15.2a. para. 7 sentences 3, 4 of the German Administrative VAT Guidelines and KMLZ Newsletter 22/2020: Federal Fiscal Court: Correction of an Invoice – Retroactive Effect to the Detriment of the Recipient). By contrast, a correction has no retroactive effect if the original invoice does not contain the mandatory invoice details or if the information is so vague, incomplete, or obviously incorrect that it is equivalent to missing information (sec. 15.2a. para. 7 sentences 6–8 of the German Administrative VAT Guidelines). In such cases, the correction only applies from the date of correction onward.

6. What does section 14c of the German VAT Act regulate?

Sec. 14c of the German VAT Act establishes a liability for unduly charged VAT. This applies when VAT is shown on an invoice without legal justification. The provision distinguishes between two scenarios:

Para. 1 covers incorrect statements of VAT. This occurs when a taxable person shows more VAT on the invoice than is actually owed – for example, 19% instead of 7%, or VAT is shown although the supply is VAT exempt, or due to a misinterpretation of the reverse charge mechanism under sec. 13b of the German VAT Act.
Para. 2 addresses unauthorised VAT statements. This applies when a person issues an invoice showing VAT without being entitled to do so – for instance, because they are not a taxable person or because they did not perform the supply, such as invoicing a third party instead of the actual recipient.

In both cases, the issuer of the invoice owes the stated VAT in order to protect tax revenue – even if no supply was actually made. The recipient of the supply cannot claim input VAT shown under sec. 14c of the German VAT Act, because it is not “legally owed“, within the meaning of sec. 15 para. 1 sentence 1 no. 1 sentence 1 of the German VAT Act. This applies even if a supply was actually made, but the VAT shown was too high or was unauthorised. (Regarding the application of sec. 14c of the German VAT Act to negative VAT amounts KMLZ Newsletter 21/2023)

In its judgment of 1 August 2025 (C-794/23), the ECJ addressed the Austrian company P-GmbH for a second time. In doing so, it clarifies the conditions under which an unduly charged VAT liability in accordance with sec. 14c of the German VAT Act arises in the context of small-value invoices in mass transactions (cf. VAT Newsletter 31/2025: ECJ: Excessive VAT shown to final consumers and taxable persons).

If the recipient has paid too much VAT to the supplier, they may reclaim the overpaid amount under civil law. If this is not possible – due to insolvency or the statute of limitations – the recipient may, under certain conditions, assert a direct claim against the tax office (also known as Reemtsma claim). The ECJ has recognized this claim, particularly in situations where recourse against the supplier is impossible or unreasonable (see KMLZ Newsletter 39/2023: ECJ: Reemtsma claim possible even if civil law claim is time barred and regarding the distinction between a correction of unduly charged VAT and the Reemtsma claim: KMLZ Newsletter 40/2024 ).

A recent decision by the German Federal Fiscal Court (judgment of 5 December 2024 – V R 16/22) clarified that a purchaser of real estate is not liable for unduly charged VAT in inherited lease agreements, provided the original invoice issuance cannot be attributed to them (see KMLZ Newsletter 06/2025: Property acquirer not liable for unduly charged VAT in rental agreements).

6.1 How can a VAT liability under sec. 14c of the German VAT Act be corrected?

Unduly charged VAT generally triggers a VAT liability. However, the ECJ has made it clear that any VAT liability under sec. 14c (based on Art. 203 of the EU VAT Directive) must be correctable. The German VAT Act sets out different requirements for correcting these invoices depending on whether sec. 14c para. 1 or para. 2 of the German VAT Act applies.

6.1.1 Sec. 14c para. 1 of the German VAT Act: Incorrect Statement of VAT

An incorrect statement of VAT occurs when a taxable person shows VAT on an invoice, even though it is not owed – or not owed in the amount shown. Correction is possible and is typically carried out by amending the invoice (sec. 14 para. 6 no. 5 of the German VAT Act in conjunction with sec. 31 para. 5 of the German VAT Implementation Code). A prerequisite is that the invoice was actually transmitted to a recipient – internal invoices (e.g., within a VAT group) do not require correction, as they have no external effect.

The invoice issuer may only correct the VAT amount in their VAT return once the conditions for correction are met. No approval from the tax office is required (sec. 14c.1 para. 5 sentences 1 and 4, para. 7 sentence 1 of the German Administrative VAT Guidelines). The correction has no retroactive effect (sec. 14c.1 para. 5 sentence 3 of the German Administrative VAT Guidelines), and leads to a corresponding adjustment of the reported VAT amounts. (See on the written assignment as correction declaration KMLZ Newsletter 06/2017: Federal Fiscal Court partially simplifies correction in accordance with sec 14c para 1 sentence 2 of the German VAT Act). A refund of the overpaid VAT to the recipient is only necessary if the invoice amount is reduced in the corrected invoice by the excessive VAT. If the invoice amount remains unchanged – because the correct VAT is recalculated from the original gross amount – no refund is required (see sec. 14c.1. para. 5 of the German Administrative VAT Guidelines – example).

Although Art. 203 of the EU VAT Directive generally requires taxation of any unduly charged VAT, the ECJ has ruled that correction is permissible if there is no risk to tax revenue or if the issuer acted in good faith (see KMLZ Newsletter 02/2024: Fiscal Court: Significance of good faith and no risk of VAT loss).

6.1.2 Sec. 14c para. 2 of the German VAT Act: Unauthorized VAT Statements

Different, and in part stricter, requirements apply to unauthorized VAT statements. Correction is only possible under the following conditions:

The invoice must be declared invalid to the recipient (this is required by the tax authorities, although not explicitly by law),
a formal application must be submitted to the tax office,
proof must be provided that there is no longer any risk of input VAT deduction by the recipient – for example, by repayment of the VAT amount to the tax office by the recipient.

The competent tax authority decides, at its discretion, how the correction is to be dealt with. Until approval is granted, the VAT liability remains. The correction generally takes effect in the tax period in which the wrongly claimed input VAT was repaid (sec. 14c para. 2 sentence 5 in conjunction with sentence 4 of the German VAT Act; sec. 14c.2. para. 5 sentences 6 and 7 of the German Administrative VAT Guidelines). However, if the recipient never claimed input VAT, the correction applies to the original tax period in which the VAT liability arose under sec. 13 para. 1 no. 3 of the German VAT Act (sec. 14c para. 2 sentence 5 in conjunction with sentence 4; sec. 14c.2. para. 5 sentence 8 of the German Administrative VAT Guidelines).

According to the ECJ, correction is also permitted in these cases if there is no risk that the recipient will claim input VAT. This applies, for example, to supplies to end consumers who are not entitled to input VAT deduction or where the issuer acted in good faith (see KMLZ Newsletter 57/2022: ECJ: No VAT liability results from showing VAT on invoices to final consumers).

A civil law claim for repayment of overpaid VAT by the recipient generally exists if a net price agreement was in place. In such cases, the recipient may reclaim the unjustified VAT from the issuer.

7. What applies to electronic invoices?

The electronic invoice (e-invoice) represents another step toward the digitalization of the VAT system. 1 January 2025 marked the start of Germany’s gradual introduction of a mandatory e-invoicing requirement for certain B2B transactions (see sec. 14 of the German VAT Act) (KMLZ Newsletter 22/2025: New draft of German Federal Ministry of Finance’s letter on e-invoicing and 39/2024: E-invoicing obligation in Germany from 2025: Finance Ministry Circular published). To implement this special national regulation in light of the generally binding requirements of the VAT Directive, Germany applied for and received an authorization from the Council pursuant to Art. 395 of the VAT Directive.

The mandatory national e-invoicing requirement applies to transactions between two taxable persons established in Germany or those with a fixed establishment in Germany. In such cases, invoices must be issued in a structured electronic format that allows for automated electronic processing (e.g., XRechnung or ZUGFeRD from version 2.0.1). PDF files do no longer qualify as e-invoices. The occurrence of format errors can be checked by using a suitable validation application (see KMLZ Newsletter 37/2025: Federal Ministry of Finance’s letter on B2B E-invoicing: Validation and Obligatory Invoice Elements).

Since the beginning of 2025, all taxable persons must also be able to receive e-invoices. However, the obligation to issue e-invoices will be introduced gradually and will apply to all taxable persons established in Germany by 2028. Exceptions to the obligation to issue e-invoices only apply to VAT exempt transactions under sec. 4 nos. 8 to 29 of the German VAT Act, small-value invoices (sec. 33 of the German VAT Implementation Code), tickets (sec. 34 of the German VAT Implementation Code), and invoices issued by small businesses under sec. 19 of the German VAT Act. (KMLZ Newsletter 10/2024: E-invoicing in Germany from 2025 - Federal Council clears the way)

In addition to this national measure, the EU-wide introduction of mandatory e-invoicing is planned as part of the ViDA initiative. This is expected to apply to cross-border B2B transactions from 1 July 2030 and aims to enable real-time reporting of transactions and to combat VAT fraud in the long term.

Contact

Dr. Thomas Streit, LL.M. EUR.

Partner

Lawyer

+49 89 217501275

thomas.streit@kmlz.de

VAT'S NEXT

[{"nid":"5191","field_eventlinktext":"\u00dcberh\u00f6hter Steuerausweis in Rechnungen: Unionsrechtswidrigkeit von \u00a7 14c UStG","field_eventlink":"https:\/\/www.kmlz-akademie.de\/modul\/ueberhoehter-steuerausweis-in-rechnungen-unionsrechtswidrigkeit-von-14c-ustg","field_referent":"\nDr. Thomas Streit, LL.M. EUR.\n\n, \nDr. Maike Huth\n\n","field_termin":"\u003Cdiv class=\u0022paragraph paragraph-fachthema-termin\u0022\u003E\n \n \n \u003Cdiv class=\u0022termin-datum\u0022\u003E\n 23.09.2025\n \u003C\/div\u003E\n \n \u003Cdiv class=\u0022termin-ort\u0022\u003E\n Online seminar\n \u003C\/div\u003E\n \n \t\t\u003Cdiv class=\u0022termin-seminarlink\u0022\u003E\n \u003Ca href=\u0022\u0022 target=\u0022_blank\u0022\u003E\n \n \u003C\/a\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n"}]

Additional topics of interest

E-Invoicing Check

[{"title":"European General Court: Safety-net acquisition VAT for using wrong VAT-ID in addition to unduly paid VAT","nid":"5473","body":"\u003Cp\u003E\u0026lt;h2 class=\u0026quot;text-align-justify\u0026quot;\u0026gt;1\u0026amp;nbsp;\u0026amp;nbsp;\u0026amp;nbsp;\u0026amp;nbsp;Background and scope of application of safety-net acquisition VAT\u0026lt;\/h2\u0026gt;\u0026lt;p class=\u0026quot;text-align-justify\u0026quot;\u0026gt;According to Art. 40 of the EU VAT Directive, intra-Community acquisitions are deemed to have taken place where the transport ends. This results in acquisition taxation in the Member State of arrival (usually without any VAT liability, provided that there is a full right to deduct input VAT).","field_datum":"02.03.2026\n","field_newsletter":"VAT Newsletter 12\/2026"},{"title":"\u201cRetroactive\u201d input VAT deduction, provided the invoice is available at the time the VAT return is filed","nid":"5468","body":"\u003Cp\u003E\u0026lt;h2 class=\u0026quot;text-align-justify\u0026quot;\u0026gt;1\u0026amp;nbsp;\u0026amp;nbsp;\u0026amp;nbsp;\u0026amp;nbsp;Background\u0026lt;\/h2\u0026gt;\u0026lt;p class=\u0026quot;text-align-justify\u0026quot;\u0026gt;It has long been clear that input VAT may only be deducted if a proper invoice is available. The EU VAT Directive distinguishes between the \u201c\u0026lt;strong\u0026gt;arising\u0026lt;\/strong\u0026gt;\u201d of the right to deduct input VAT \u2013 occurring at the same time as the VAT becomes chargeable (usually upon receipt of the supply) \u2013 and its \u201c\u0026lt;strong\u0026gt;exercise\u0026lt;\/strong\u0026gt;\u201d. The latter requires that a proper invoice was received.","field_datum":"16.02.2026\n","field_newsletter":"VAT Newsletter 10\/2026"},{"title":"ECJ: Excessive VAT shown to final consumers and taxable persons","nid":"5193","body":"\u003Cp\u003E\u0026lt;h2 class=\u0026quot;text-align-justify\u0026quot;\u0026gt;\u0026lt;span class=\u0026quot;cf0\u0026quot;\u0026gt;1 Background\u0026lt;\/span\u0026gt;\u0026lt;\/h2\u0026gt;\u0026lt;p class=\u0026quot;text-align-justify pf0\u0026quot;\u0026gt;\u0026lt;span class=\u0026quot;cf0\u0026quot;\u0026gt;The ECJ has had to address the \u0026lt;\/span\u0026gt;\u0026lt;em\u0026gt;\u0026lt;span class=\u0026quot;cf0\u0026quot;\u0026gt;P-GmbH\u0026lt;\/span\u0026gt;\u0026lt;\/em\u0026gt;\u0026lt;span class=\u0026quot;cf0\u0026quot;\u0026gt; case not just once, but twice.","field_datum":"11.08.2025\n","field_newsletter":"VAT Newsletter 31\/2025"},{"title":"VAT liability for unduly charged VAT also possible when negative VAT amounts are shown","nid":"372","body":"\u003Cp\u003E\u0026lt;h2 class=\u0026quot;text-align-justify\u0026quot;\u0026gt;1 Background\u0026lt;\/h2\u0026gt;\u0026lt;p class=\u0026quot;text-align-justify\u0026quot;\u0026gt;Sometimes invoices contain negative invoice amounts and a corresponding negative VAT amount is shown in the invoice (e.g. with a minus sign). These can be invoices that only show a negative amount. However, they can also be invoices that contain both positive and negative partial amounts: The positive amount shows the supplier\u2019s payment claim against the recipient. The negative amount indicates an opposing payment claim, the recipient\u2019s claim against the supplier.","field_datum":"26.04.2023\n","field_newsletter":"VAT Newsletter 21\/2023"},{"title":"ECJ: No VAT liability results from showing VAT on invoices to final consumers","nid":"396","body":"\u003Cp\u003E\u0026lt;h2 class=\u0026quot;text-align-justify\u0026quot;\u0026gt;1 Background\u0026amp;nbsp;\u0026lt;\/h2\u0026gt;\u0026lt;p class=\u0026quot;text-align-justify\u0026quot;\u0026gt;Art. 203 of the EU VAT Directive and sec. 14c of the German VAT Act provide that the issuer of an invoice is liable for the VAT he incorrectly shows in his invoice. In its two paragraphs, sec. 14c of the German VAT Act also provides various correction options. These corrective actions require, inter alia, that the issuer of the invoice amends the issued invoices.","field_datum":"20.12.2022\n","field_newsletter":"VAT Newsletter 57\/2022"},{"title":"Invoices: Federal Ministry of Finance on requirement of \u201ecustomary trade description\u201c","nid":"5320","body":"\u003Cp\u003E\u0026lt;h2 class=\u0026quot;text-align-justify\u0026quot;\u0026gt;1 Background\u0026lt;\/h2\u0026gt;\u0026lt;p class=\u0026quot;text-align-justify\u0026quot;\u0026gt;Proper invoices, and the deduction of input VAT dependent thereon are a frequent target of VAT audits. According to Art. 14 (4) sentence 1 no. 5 of the German VAT Act, invoices must include the specification of the goods or services received. The law refers (in parenthesis) to the required description as a \u0026quot;customary trade description\u0026quot;.","field_datum":"09.12.2021\n","field_newsletter":"VAT Newsletter 41\/2021"},{"title":"Federal Fiscal Court: Correction of an Invoice \u2013 Retroactive Effect to the Detriment of the Recipient","nid":"581","body":"\u003Cp\u003E\u0026lt;h2 class=\u0026quot;text-align-justify\u0026quot;\u0026gt;1 Facts\u0026lt;\/h2\u0026gt;\u0026lt;p class=\u0026quot;text-align-justify\u0026quot;\u0026gt;The underlying facts of the Federal Fiscal Court decision of 22 January 2020 (XI R 10\/17) were, in summary, as follows: In 2007, the Plaintiff purchased goods and services and deducted input VAT from the respective invoices showing VAT. In 2012, the tax office claimed back the input VAT plus interest. The reason for the tax office\u2019s action is that it assumed supplies of construction work had been carried out and therefore also assumed the reverse charge rules were applicable.","field_datum":"22.06.2020\n","field_newsletter":"VAT Newsletter 22\/2020"},{"title":"Invoices: Federal Fiscal Court decides on the description for goods in the low-price segment","nid":"602","body":"\u003Cp\u003E\u0026lt;h2 class=\u0026quot;text-align-justify\u0026quot;\u0026gt;\u0026lt;span class=\u0026quot;cf0\u0026quot;\u0026gt;1 Background\u0026lt;\/span\u0026gt;\u0026lt;\/h2\u0026gt;\u0026lt;p class=\u0026quot;pf0 text-align-justify\u0026quot;\u0026gt;\u0026lt;span class=\u0026quot;cf0\u0026quot;\u0026gt;Proper invoices and the deduction of input VAT continue to be a frequent target of VAT audits. According to Article 14 (4) German VAT Act, invoices have to include the specification of the goods or services received. In a parenthesis, the law refers to the required description as \u0026quot;customary trade description\u0026quot;.","field_datum":"14.01.2020\n","field_newsletter":"VAT Newsletter 01\/2020"}]