The European Commission has demanded that Germany relax its severe restrictions relating to cross-border refunds, in a reasoned opinion of 19th July 2018.
Under current German VAT policy, in some cases, refund claims submitted by non-resident EU businesses are being denied because the tax authorities deem the provided information as insufficient despite them not requesting the additional information from the claimant. Consequently, refund applications are rejected even when the substantive requirements under the EU VAT Directive have been met.
Previously, the Commission had issued Germany with a letter of formal notice on 4th October 2017.
Germany has two months to comply and align its VAT refund law with that of EU legislation or it risks the case being referred to the CJEU.
Accordance offers expert claim management so if you are experiencing issues with German refunds, please do get in touch with us.