Current information on the right to deduct input tax when invoice particulars are missing

We already mentioned you in KI 01/17 as a benefit for entrepreneurs. Very pleasing EU Court ruling informed. In this judgment, the European Court of Justice held that Inadequate information to the performance period or to the object of the performance on the invoice through Additional documents or documents can be supplemented. Provided that the taxpayer can prove that the general Conditions for tax deduction met are (the performance was performed for the company etc.), the financial administration may Input VAT deduction Therefore do not fail or withdraw the tax deduction retroactively. The tax deduction claimed in the past can therefore remain valid in these cases, even if the original invoice not corrected will become.

The Court of Justice of the European Union has ruled in another case (Rs C-518/14 Senatex from 15 September 2016) is also concerned with the question of, What temporal effect do accounting adjustments have?. The starting point was that for a commission payment using a invoice not formally presented correctly Input VAT deduction valid This is what the German company calculated, among other things, when calculating its receivables from its service providers, which are based on the credits. missing However, the Note onto the Tax number or the UID number of the service provider. As part of a Business audit was was Input VAT deduction during the examination-relevant period due to formally incorrect commission calculations failed. Even during the operational audit corrected invoices submitted - however, the financial administration held the view that the Invoice corrections Not for den may apply to the past period, but would only take effect with the current date. Thus, although it would be possible to Ultimately one Input VAT deduction Yes, but only after ab dem Presence the corrected invoices. Therefore, the pre-tax amount claimed too early would be Interest on late payments to be paid. According German law if there is a performance after the performance has been given Input VAT deduction namely only when one a formally correct invoice was issued. As long as an invoice has not been formally issued correctly, there is therefore no right to a tax deduction. This right only arises at the time a correct invoice is presented. If the invoice is Pre-tax income claimed too early, In Germany, therefore, late payment interest is charged. The Austrian legal system essentially corresponds to the German legal system; instead of late payment interest, the Austria However, one 2%nd late payment surcharge an.

The The Court of Justice emphasized in his Decision-making, that the existence of an invoice is, in principle, a prerequisite for claiming the tax deduction, but that it is possible, a Formally incorrect invoice later to be corrected. That the invoices are in the causal case properly corrected, was uncontested. However, the door was open Question, Whether a Correction of the originally claimed input tax credit is warranted or whether the input tax deduction only becomes due from the time the correction was made. The Court of Justice of the European Union ruled positive for the taxpayer, that one Reconciliation of invoices to obtain the pre-tax deduction retroactively to apply It does. The contrary view would, in fact, contradict the basic principle of Community law.

This ECJ ruling has not yet been incorporated into the Austrian VAT guidelines. Therefore It remains to be seen, How this judgment affects the Austrian financial management perspective However, one thing is certain: one excessive formalism by the European Court of Justice on behalf of the financial administration clear bar was inserted. So, if the UID number of the provider of the service on invoices missing, If this were to happen formal deficiency citing the case law of the European Court of Justice at least be able to be corrected retroactively. Whether this will apply to the correction of all formal errors remains to be seen.

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