7.1.3 Germany

The German legislation with regard to the deduction of input VAT is laid down in:

UStG and UStDV can be found on www.gezetse-im-internet.de; UStR can be found on www.steuerlinks.de/richtlinie/ustr-2008.html.

In addition, it is important to take notice of ‘BMF-Schreiben’, letters of the Federal Ministry of Finance (Bundesministerium der Finanzen: www.bundesfinanzministerium.de) and of ‘Verwaltungserlasse’, letters of the ‘Oberfinanzdirektionen’ the tax authorities of the 16 ‘Bundesländer’.

The German VAT is administered by the tax authorities in the 16 German states (Ministerium der Finanzen). There are Regional Tax Offices (Oberfinanzdirektionen or, in some Ländern, Landesamt für Steuern) which fall under the Ministries. These Tax Offices are ususally located in the same city as the Tax Courts, and it is their task to coordinate the application of tax law within their region. The VAT revenue is shared between the Länder and the Bund. Each of the 16 authorities is autonomous in taking standpoints in VAT-technical issues. On a regular basis Länder and Bund coordinate discussions on technical issues. If they are successful in agreeing a common view, this results in a BMF-Schreiben or in a Verwaltungserlass of the Oberfinanzdirektion of one of the Länder which mentions that it is published after agreement between Länder and Bund.

The highest federal court in Germany competent for tax issues is the Bundesfinanzhof (www.bundesfinanzhof.de). The judgments of the Supreme Tax Court can be found on www.bundesfinanzhof.de. Other jurisprudence can be found on www.bundesrecht.juris.de.