According to a recently published BFH ruling of 1 March 2018, case no. V R 18/17, the BFH interprets the requirements for invoice details regarding the date of supply very generously in favour of entrepreneurs entitled to deduct input VAT. According to this ruling, the calendar month in which the supply was performed may also be derived from the issue date of the invoice, provided that, based on the circumstances of the individual case, it can be assumed that the supply was rendered in the same month in which the invoice was issued.
Facts of the case:
In the case at hand, the claimant had deducted input VAT from vehicle deliveries made to it. The invoices each related to one-off, industry-standard vehicle deliveries that were carried out at the same time as, or in direct connection with, the issuance of the invoice. However, these invoices contained neither the supplier's tax number nor information on the date of supply. The tax office therefore denied the input VAT deduction on the grounds that the invoices were not properly issued. The claimant was successful in its action before the fiscal court; the tax office, however, lodged an appeal against this fiscal court ruling with the BFH.
The BFH takes the view that the issue date of the invoice alone makes it clear that the respective delivery was carried out in the calendar month in which the invoice was issued, and that the date of supply therefore follows from the issue date of the invoice. The statement of the issue date is thus to be regarded as a formally correct entry within the meaning of the German VAT Implementing Ordinance (Umsatzsteuerdurchführungsverordnung).
With this decision, the BFH makes it easier for many taxpayers to claim the input VAT deduction, thereby slightly relaxing the strict rules applied by the tax authorities and interpreting them more generously in favour of taxpayers.
Frequently asked questions
Frequently asked questions
Is the invoice date sufficient as an indication of the time of supply for input VAT deduction?
Yes, according to the BFH ruling of 01.03.2018 (V R 18/17), the time of supply can be derived from the invoice issue date. The prerequisite is that, based on the circumstances of the individual case, it can be assumed that the service was rendered in the month the invoice was issued. A separate statement of the service date is then not strictly required.
In which cases is the invoice date sufficient as the date of supply?
The invoice date is sufficient particularly for industry-standard deliveries that are carried out simultaneously with the issuance of the invoice, such as car deliveries. In these cases, the circumstances make it clear that the delivery and invoicing took place in the same calendar month. This satisfies the formal requirement under the Umsatzsteuer-Durchführungsverordnung (German VAT Implementation Ordinance).
What is the practical significance of the BFH ruling V R 18/17 for input VAT deduction?
The ruling makes it easier for businesses to claim input VAT deduction, as the tax authorities may no longer challenge every missing explicit statement of the date of supply. The BFH interprets the formal invoice requirements more generously in favor of taxpayers. This reduces the risk of input VAT deduction being denied on purely formal grounds.
Can the tax office deny the input VAT deduction if the delivery date is not explicitly stated?
No. If the time of supply can be inferred from the invoice issue date, the tax office may not deny the input VAT deduction solely because a separate delivery date is missing. In such cases, the invoice is deemed formally compliant. The BFH clarified this in opposition to the stricter view of the tax authorities.
Which mandatory invoice details were disputed in the BFH case?
At issue were the missing specification of the actual delivery date and the supplier's tax number on invoices for car deliveries. The BFH accepted the invoice date as a sufficient indication of the time of supply, since the delivery clearly took place in the same month. As a result, the input VAT deduction was preserved.