For\u00adeign com\u00adpa\u00adnies that sup\u00adp\u00adly goods or ser\u00advices to pri\u00adva\u00adte indi\u00advi\u00addu\u00adals in Ger\u00adma\u00adny can\u00adnot recla\u00adim the input VAT incur\u00adred under the so-cal\u00adled input VAT refund pro\u00adce\u00addu\u00adre. This was cla\u00adri\u00adfied by the Colo\u00adgne Finan\u00adce Court in its jud\u00adge\u00adment of 13 Novem\u00adber 2025 (Case No. 2 K 2009\/24).<\/p>\n
In 2022, a Dutch entre\u00adpre\u00adneur sup\u00adpli\u00aded, instal\u00adled and com\u00admis\u00adsio\u00adned a sec\u00adtion\u00adal door for a pri\u00adva\u00adte indi\u00advi\u00addu\u00adal in Ger\u00adma\u00adny. In doing so, he char\u00adged Ger\u00adman VAT and remit\u00adted it to the tax office. He sub\u00adse\u00adquent\u00adly appli\u00aded for a refund of his input VAT for this peri\u00adod via the spe\u00adcial input VAT refund procedure.<\/p>\n
This pro\u00adce\u00addu\u00adre is actual\u00adly a sim\u00adpli\u00adfied way for for\u00adeign busi\u00adnesses to cla\u00adim a refund of input VAT wit\u00adhout having to sub\u00admit a full VAT return in Ger\u00adma\u00adny. Howe\u00adver, the tax office rejec\u00adted the application.<\/p>\n
The Colo\u00adgne Finan\u00adce Court upheld the rejec\u00adtion on two grounds.<\/p>\n
The spe\u00adcial remu\u00adne\u00adra\u00adti\u00adon pro\u00adce\u00addu\u00adre under Sec\u00adtion 59(1) of the Value Added Tax Imple\u00admen\u00adta\u00adti\u00adon Ordi\u00adnan\u00adce (UStDV) is available to for\u00adeign busi\u00adnesses only if they eit\u00adher do not gene\u00adra\u00adte any taxa\u00adble tur\u00adno\u00adver in Ger\u00adma\u00adny at all, or gene\u00adra\u00adte only such tur\u00adno\u00adver whe\u00adre the reci\u00adpi\u00adent of the sup\u00adp\u00adly is lia\u00adble for the tax. This is the case, for exam\u00adp\u00adle, with con\u00ads\u00adtruc\u00adtion ser\u00advices bet\u00adween busi\u00adnesses under Sec\u00adtion 13b of the Value Added Tax Act (UStG), known as the rever\u00adse-char\u00adge procedure.<\/p>\n
In this case, howe\u00adver, the tran\u00adsac\u00adtion invol\u00adved the sup\u00adp\u00adly of goods to a pri\u00adva\u00adte indi\u00advi\u00addu\u00adal. Pri\u00adva\u00adte indi\u00advi\u00addu\u00adals can\u00adnot assu\u00adme lia\u00adbi\u00adli\u00adty for the tax, so the trader had to pay the VAT hims\u00adelf. Con\u00adse\u00adquent\u00adly, he was sub\u00adject to the stan\u00addard taxa\u00adti\u00adon pro\u00adce\u00addu\u00adre and was not entit\u00adled to the sim\u00adpli\u00adfied refund procedure.<\/p>\n
Fur\u00adther\u00admo\u00adre, the claims had not been sub\u00admit\u00adted within the pre\u00adscri\u00adbed time limit. Under Sec\u00adtion 61(2) of the VAT Imple\u00admen\u00adta\u00adti\u00adon Regu\u00adla\u00adti\u00adon (UStDV), claims for a refund must be sub\u00admit\u00adted no later than nine months after the end of the calen\u00addar year in which the entit\u00adle\u00adment to an input tax refund aro\u00adse. This dead\u00adline is a so-cal\u00adled pre\u00adclu\u00adsi\u00adve dead\u00adline, mea\u00adning that it can\u00adnot be exten\u00added, nor can a fail\u00adure to meet it be reme\u00addi\u00aded retrospectively.<\/p>\n
For\u00adeign busi\u00adnesses that car\u00adry out tran\u00adsac\u00adtions with pri\u00adva\u00adte indi\u00advi\u00addu\u00adals in Ger\u00adma\u00adny which are sub\u00adject to VAT must fol\u00adlow the stan\u00addard VAT pro\u00adce\u00addu\u00adre. This means that they must regis\u00adter for VAT with the rele\u00advant Ger\u00adman tax office and sub\u00admit an annu\u00adal VAT return. Only in this way can they cla\u00adim back their input VAT for the calen\u00addar year in question.<\/p>\n
It is important to note that it is not pos\u00adsi\u00adble to switch bet\u00adween the two sche\u00admes within a sin\u00adgle year. Anyo\u00adne who has gene\u00adra\u00adted taxa\u00adble tur\u00adno\u00adver in Ger\u00adma\u00adny at any point must account for all input VAT for that year using the stan\u00addard scheme.<\/p>\n
For for\u00adeign com\u00adpa\u00adnies that occa\u00adsio\u00adnal\u00adly car\u00adry out work in Ger\u00adma\u00adny \u2013 such as trade\u00adspeo\u00adp\u00adle or instal\u00adla\u00adti\u00adon firms from other EU count\u00adries \u2013 this ruling could have far-rea\u00adching con\u00adse\u00adquen\u00adces. Even a sin\u00adgle ser\u00advice pro\u00advi\u00added to a pri\u00adva\u00adte indi\u00advi\u00addu\u00adal could result in the sim\u00adpli\u00adfied VAT sche\u00adme being ruled out for the enti\u00adre year. Anyo\u00adne who is unsu\u00adre about the VAT tre\u00adat\u00adment of their ser\u00advices in Ger\u00adma\u00adny should seek tax advice in good time.<\/p>\n