An analysis by Flick Gocke Schaumburg, Taxand Germany
San Kim, a lawyer at our German partner firm Flick Gocke Schaumburg, has recently published an article discussing the so-called “Reemtsma claim”, which allows entrepreneurs to seek reimbursement of incorrectly invoiced sales tax from tax authorities. In some cases, recipients of services may have a direct claim against tax authorities if recovering the tax from their suppliers is impossible or too difficult.
The article highlights a case where a farmer and forester sought reimbursement due to a tax rate error by their wood supplier. The ECJ ruled in favour of the farmer and forester, clarifying that the Reemtsma claim exists even if the supplier has used a statute of limitations defence. The risk of double burden is eliminated by restricting the right to reimbursement after correcting the invoice.
Read the full article on the claim and its implications for tax administrations and the ECJ here.
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.
