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BMF issues guidance on input VAT refund claims of nonresident businesses
BMF clarifies conditions for input VAT refund from invoices for intra-community supplies or export supplies
The German Ministry of Finance (BMF) published guidance on February 16, 2016 that clarifies the rules relating to a refund of input VAT charged in invoices for intra-community or export supplies.
The new guidance concerns cases where suppliers charge German VAT on invoices for cross-border supplies because they lack sufficient documentation that would support the exempt nature of the supply. If it is clear that the supply qualifies for exempt treatment, the VAT on the invoice is considered to be charged incorrectly and thus is not recoverable as input VAT under the special refund procedure applicable to nonresidents.