German Federal Fiscal Court Opens the Path from the Special Input VAT Refund Procedure to the Regular VAT Reporting Scheme in the Case of Invoice Corrections

In a recent decision, the German Federal Fiscal Court decided on the correct procedure and the correct period in which taxable persons may claim the input VAT deduction if their supplier corrected their purchase invoice. This decision provides a way out of the special input VAT refund procedure and back to the regular VAT reporting scheme. It could be of great relevance, especially for taxable persons from third countries where there is no reciprocity.