The jurisprudence of the ECJ and the German Federal Fiscal Court has provided hope of input VAT deduction in the construction of so-called development facilities. Now the German tax authorities have reacted with a Federal Ministry of Finance letter and largely dashed these hopes. There are strong arguments supporting the assertion that the tax authorities are in the wrong.

The device bonus paid by a mobile service provider to an intermediary may constitute third party consideration for the supply of a mobile phone. The German Federal Fiscal Court previously stated this in its 2013 judgment in “Gratis-Handy (free mobile phone)” and the tax authorities subsequently adopted this view. In its letter dated 23 January 2024, the German Federal Ministry of Finance has now clarified that a contractual decoupling precludes consideration paid by a third party.

The introduction of e-invoicing obligations in Europe remains high on the political agenda. However, there have been delays both at EU level and in many EU Member States, most recently due to technical problems. You will find an update on current developments in our newsletter. In our online seminar on 06.02.2024 we will give you additional in-depth insights.