Germany Fails to Align with EU Rules on VAT Refunds

Germany has been referred to the Court of Justice of the EU for rejecting certain applications for VAT refunds coming from businesses in other member states.

The incidents have occurred when they believed the information provided on the VAT refund is insufficient. Instead of asking for additional information on the nature of the goods and services, it has come to a decision anyway.

VAT refunds were denied even though they fulfil the substantive requirements. It violates the right to a VAT refund established under the EU rules* and the Refund directive**.

The decision was made by the European Commission in January following a review as Germany has failed to bring its legislation in line with the EU law.

*VAT Directive, Council Directive 2006/112/EC

**Refund Directive, Council Directive 2008/9/EC).

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