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Non-performing Loans: Federal Fiscal Court Submits Case to the ECJ regarding VAT Treatment

GSK Stockmann & Kollegen has released an update explaining a case involving the VAT treatment of nonperforming loans that the German Federal Fiscal Court referred to the European Court of Justice.

Executive Summary

  •  Federal Fiscal Court raises doubts regarding a taxable supply of the purchaser of non-performing receivables.
  •  Significant economic effects on input VAT refund
  •  Deviation from current administrative practice
  •  Case submitted to the ECJ

On 24 February 2010, the Federal Fiscal Court (FFC) published a ruling dated 10 December 2009 in which various

issues are addressed regarding the VAT treatment of the purchase of non-performing loans to the European Court

of Justice (ECJ).

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