Businesses that make taxable supplies are entitled to recover German VAT incurred on expenditure (known as 'input VAT') used for the purpose of making these taxable supplies.
Businesses that make only exempt supplies cannot recover input VAT. However, there are exceptions depending on the kind of supply. Businesses that make both taxable and exempt supplies can partly recover input VAT (explained further below in 19.39).
A VAT invoice must be held in almost every case as evidence of entitlement to recover input VAT incurred. The invoice must be correctly addressed to the business receiving the supply and must contain the relevant characteristics of a VAT invoice.
VAT will also be incurred in relation to goods imported from outside the EU. This VAT, known as 'import VAT', will not be evidenced by a VAT invoice. Instead, the import
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Web page updated on 17 Mar 2025 15:51