GlossaryEN1 min readUpdated: Jun 18, 2026

denial of input tax deduction claim

A business submits its VAT return and claims input tax on purchases – the tax authority refuses.

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Last updated: 18 June 2026Published: 27 January 2026

Source: https://de.wikipedia.org/wiki/Vorsteuer

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Logistics Concept

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Definition & Explanation

A business submits its VAT return and claims input tax on purchases – the tax authority refuses. The denial of input tax deduction claim is the formal rejection by a tax authority of a company's right to offset VAT paid on inputs against VAT collected on sales. Typical grounds include incomplete invoice particulars, insufficient proof of business use, or suspected involvement in VAT carousel fraud. The financial impact is direct: the company must absorb the VAT cost without relief against output tax. Disputes are resolved through a formal objection procedure with the tax office, and if unsuccessful, through tax court proceedings.

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denial of input tax deduction claim

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Related Terms

denial of input tax refund

retroactive claim for input tax entitlement

prescription of the input tax claim

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VAT refund claim

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