Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Germany, The Netherlands

Germany, The Netherlands REVIEW 2 0 0 9­5 ec Case Law TAX GERMANY GERMAN VAT REGULATIONS REGARDING THE CALCULATION METHOD OF THE DEDUCTIBLE INPUT VAT CONTRARY TO COMMUNITY LAW? 1. INTRODUCTION Taxable persons who carry out value added tax (VAT) exempt supplies without input VAT credit are not entitled to full input VAT recovery. In case they carry out supplies that are subject to VAT as well, they can only recover the input VAT incurred with their business activity; thus, entitling them to input VAT recovery. Input VAT incurred with costs, which can be directly attributed to the respective activity, is either fully deductible (for the activity which entitles to input VAT credit) or non-deductible (for the VAT exempt activity). For input VAT incurred with costs that cannot be directly attributed to a certain activity, a pro ratio of the deductible input VAT has to be calculated. The German VAT Act provides the proportional deduction of VAT for supplies of goods or services used by a taxable person, both for transactions in respect of which VAT is deductible and for transactions in respect of which VAT is not deductible divergent to the rules of the VAT Directive 2006/112/EC. However, this German http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png EC Tax Review Kluwer Law International

Germany, The Netherlands

Sauer; Jung; Weber; Fortuin
EC Tax Review , Volume 18 (5) – Oct 1, 2009
Download PDF
3 pages

Loading next page...
 
/lp/kluwer-law-international/germany-the-netherlands-hZWsR13g1o
Publisher
Kluwer Law International
Copyright
Copyright © Kluwer Law International
ISSN
0928-2750
Publisher site
See Article on Publisher Site

Abstract

REVIEW 2 0 0 9­5 ec Case Law TAX GERMANY GERMAN VAT REGULATIONS REGARDING THE CALCULATION METHOD OF THE DEDUCTIBLE INPUT VAT CONTRARY TO COMMUNITY LAW? 1. INTRODUCTION Taxable persons who carry out value added tax (VAT) exempt supplies without input VAT credit are not entitled to full input VAT recovery. In case they carry out supplies that are subject to VAT as well, they can only recover the input VAT incurred with their business activity; thus, entitling them to input VAT recovery. Input VAT incurred with costs, which can be directly attributed to the respective activity, is either fully deductible (for the activity which entitles to input VAT credit) or non-deductible (for the VAT exempt activity). For input VAT incurred with costs that cannot be directly attributed to a certain activity, a pro ratio of the deductible input VAT has to be calculated. The German VAT Act provides the proportional deduction of VAT for supplies of goods or services used by a taxable person, both for transactions in respect of which VAT is deductible and for transactions in respect of which VAT is not deductible divergent to the rules of the VAT Directive 2006/112/EC. However, this German

Journal

EC Tax Review – Kluwer Law International

Published: Oct 1, 2009

There are no references for this article.