Until now, the tax authorities have insisted that the supplying entrepreneur state on invoices the location where they conduct their activities. If this information was not correct, the input VAT deduction was denied to the invoice recipient.
The BFH has now ruled in two judgments dated 21 June 2018 that it is no longer necessary for the entrepreneur to state on the invoice the location where they conduct their activities. Instead, it is sufficient to state an address at which postal contact can be made.
Frequently asked questions
Frequently asked questions
Which address must the supplying business state on an invoice?
According to the BFH rulings of 21 June 2018, it is sufficient to state an address on the invoice at which the supplying business can be reached by post. It is no longer necessary to indicate the place where the business activity is actually carried out.
What was the tax authorities' previous position on the address shown on invoices?
The tax authorities previously required the supplying entrepreneur to state the address on the invoice where the business activity was actually carried out. If this information was incorrect, the invoice recipient was denied the input VAT deduction.
What are the consequences of the new BFH case law for input VAT deduction?
Since a postal address sufficient for correspondence is now adequate, input VAT deduction can no longer be denied solely because the stated address does not match the actual place of business. This significantly facilitates the recognition of invoices and reduces the risk for invoice recipients.
When did the BFH ease the requirements for the address on invoices?
In two rulings dated 21 June 2018, the BFH held that stating a postal address at which the supplying business can be reached is sufficient. This relaxed the previously strict requirements imposed by the tax authorities regarding invoice details.