VAT Refund Procedure in Germany: Federal Fiscal Court Limits Formalism Regarding Advance Payment Invoices

In a recent case, the German Federal Central Tax Office partially denied a VAT refund request by applying formal requirements too strictly to the disadvantage of the taxable person involved. The matter was subsequently brought before the German Federal Fiscal Court. In this article, the authors examine the Court’s significant ruling and consider its broader implications for taxable persons and VAT refund procedures.