VAT reclaimed from the tax office
August 12, 2011 | 25,00 EUR | answered by Dr. Dr. Danjel-Philippe Newerla
I took over an online business in 2008. The person transferring the business informed me that they would continue to operate commercially. They then issued two invoices (goods and software) with indicated VAT and received payment. I received the input tax back from my tax office in 2008. However, during a tax audit, it was discovered that the person transferring the business had informed their tax office that it was a complete business closure and therefore everything was VAT exempt. They reported the received gross amount to the tax office. My tax office is now demanding that I repay the VAT.
Do I have a chance to either not pay this amount to the tax office or to get it back from the former owner?
Dear inquirer,
Thank you for your inquiry. I would like to answer it as follows:
If it was indeed a VAT-exempt business closure, no VAT would actually be due, and no VAT should have been invoiced. In this case, unfortunately, you would not be able to reclaim the VAT.
Based on your description, this seems to be the case.
In my opinion, there may be a claim for damages against the seller. However, it depends on the agreement made with the seller. From your description, I assume that a certain purchase price including VAT was agreed upon.
In my view, what is crucial is that this person indicated a business closure on one hand, but on the other hand informed you that they would continue to operate commercially.
In my opinion, you could probably claim damages here or even, if necessary, withdraw from the entire purchase contract due to fraudulent deception or challenge the purchase contract.
However, a comprehensive evaluation of the situation is necessary before a final conclusion can be reached. Therefore, I strongly advise you to engage a local colleague to represent your legal interests.
I hope I have provided you with some initial legal guidance and wish you success and all the best!
Before I conclude, I would like to remind you:
The legal advice I have provided is based solely on the information you have provided. My response is only an initial legal assessment of the situation and cannot replace a comprehensive examination of the facts. Adding or omitting relevant information can lead to a completely different legal assessment.
I hope my explanations have been helpful. Feel free to contact me through the follow-up option.
Wishing you a pleasant Friday afternoon!
Kind regards from the North Sea coast,
Dipl.-Jur. Danjel-Philippe Newerla, Attorney at Law
Stresemannstr. 46
27570 Bremerhaven
kanzlei.newerla@web.de
Fax. 0471/140244
Tel. 140240 or 140241
