Section 4: Tax and input VAT

§ 13c Liability on the assignment, pledging or garnishment of claims

(1) To the extent that the taxable person providing the supply has assigned the entitlement to the consideration for a taxable transaction, within the meaning of § 1 paragraph 1 number 1, to another taxable person and the assessed VAT, the calculation of which took into account this transaction, has not been paid or not paid in full on the due date, the assignee is liable under paragraph 2 for the VAT included in the claim, provided that it is contained in the amount received. VAT shall not be regarded as due in the event that the enforcement of the tax assessment, with regard to the VAT included in the assigned claim, is deferred. The claim is deemed to be received in full where the assignee has assigned the receivable to a third party. The claim shall not be regarded as received by the assignee if the taxable person providing the supply receives a payment in return for assigning the claim. The condition is that this amount is actually obtained in the sphere of disposition of the taxable person providing the supply; this should not be assumed if this amount is paid to an account to which the assignee has access.

(2) The assignee shall be liable at the point in time when the assessed VAT is due, at the earliest from the point in time when the amount of the assigned claim is collected. By way of derogation of § 191 of the Fiscal Code, there shall be no discretion with respect to the claim under sentence 1. The amount of the liability shall be limited to the amount of VAT not paid on the due date. The assignee shall not be liable, if he has made payments within the meaning of § 48 of the Fiscal Code, on the VAT assessed in accordance with paragraph 1 sentence 1.

(3) Paragraphs 1 and 2 shall apply accordingly in the case of the pledging or garnishment of claims. In the case of a pledge, the pledge shall replace the assignee and, in the case of a garnishment, the judgment creditor.