European Court of Justice Issues Preliminary Ruling on German VAT Refund Rules

The European Court of Justice (ECJ) Sept. 5 issued a preliminary ruling for Case No. C-83/23, on German VAT refund rules. The taxpayer, a successor to a German limited partnership, engaged in sale-and-leaseback transactions. The taxpayer purchased boats from a German supplier that had charged German VAT on boats purchased from Italy, treated as intra-community supplies, which the taxpayer deducted as input tax. The German tax authority denied the deduction. The taxpayer sought VAT recalculation after the supplier’s insolvency but was denied. Upon request for a preliminary ruling, the ECJ agreed with the tax authority and held that under Council ...