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Already in 2009, the German Federal Fiscal Court (BFH) ruled, for the first time, that economic integration is also possible indirectly in the context of a VAT group. In practice, this is easily overlooked when examining the requirements of a VAT group. It is therefore all the more important that the BFH is currently taking up this jurisprudence once again. The BFH’s reference, that a participation does not have to be allocated to the economic activity in order to be a controlled company, is also a valuable clarification for the practice.
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If a recipient of a supply has paid too much VAT to a supplier and his input VAT deduction fails, then the recipient is dependent on having the corresponding VAT amount refunded by the supplier. If this repayment under civil law also fails, the so-called Reemtsma claim can prove to be the best solution for the recipient. In a recent judgment of 7 September 2023 in the legal case Schütte (C-453/22) the ECJ clarifies that this claim also applies when the supplier invokes the statute of limitation under civil law against the recipient. At the same time, the ECJ restricts the correction by the supplier in accordance with sec. 14c of the German VAT Act and confirms a claim for interest by the recipient.
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The German Federal Fiscal Court (BFH) has ruled that no splitting requirement is applicable for the supply of rental services, which would require the supplies to be split into separate taxable (operating equipment) and VAT exempt parts (the letting of immovable property and buildings) pursuant to sec. 4 no. 12 sentence 2 UStG. In its decision of 22 March 2023, the BFH thus changes its case law in its implementation of the ECJ ruling in the proceedings C-516/21. Sec. 4 no. 12 sentence 2 UStG does not apply to the provision of permanently installed operating equipment if it is an ancillary supply to the VAT-exempt rental service as a main supply, which is VAT exempt pursuant to sec. 4 no. 12 sentence 1 lit. a UStG.
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