Weismann Tax Firm

Elena Weismann
Graduate Economist, Tax Consultant
Certified Consultant for International Tax Law

Correction of an invoice in the event of an incorrect disclosure of sales tax

by Elena Weismann in News from tax law

A landowner has leased a developed property to a company in order to operate a nursing home. The furnishings of the property were made available to the company through a separate agreement. The property was treated as tax-free, but the company was charged value-added tax for the provided furnishings. Later, the landowner applied for a reduction in turnover tax because the provision of furnishings as an ancillary service to the tax-free lease was also required to be tax-free.

The landowner informed the tax office that she had corrected the previous settlements and demanded a reimbursement for the subsequent amount due from the invoice correction. The tax office refused to reimburse the amount because the overstated tax was not repaid to the service recipient. The Federal Finance Court has proved this. An entrepreneur displaying a too high tax amount in an invoice can correct this invoice. For an invoice correction to be effective, the entrepreneur must pay back the received value added tax to the performance receiver otherwise they benefit twice. Repayment can also be made through offsets and assignments.

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