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No Time Limit on German Tax Deductions, EU Court Adviser Says

May 20, 2021, 5:03 PM

The late filing of a value-added tax claim is not enough grounds for rejection by the tax authorities, an adviser to the European Union’s top court said Thursday.

Under EU law, taxpayers can deduct input VAT with regard to goods and services purchased for business purposes. In Germany, however, there is a time limit as to when taxpayers can do this, in particular with regard to construction work.

“Under the established case-law of the Court, the right of deduction forms an integral part of the VAT scheme and in principle may not be limited,” Evgeni Tanchev, an advocate ...