Section 6: Special schemes

§ 25f Rejection of input VAT deduction and VAT exemption in cases of involvement in tax evasion

(1) If a taxable person knew or should have known that he is involved, by means of a supply carried out by him or supplies purchased by him, in a transaction, in a situation where a supplier or another person involved in the previous or subsequent transactions levels was party to the commission of evasion of VAT or unjustified obtainment of input VAT deduction, according to § 370 of the Fiscal Code, or impairment of VAT revenue according to §§ 26a, 26c, the following is to be rejected:

1. the VAT exemption according to § 4 number 1 lit. b in connection with § 6a,

2. the input VAT deduction according to § 15 paragraph 1 sentence 1 number 1,

3. the input VAT deduction according to § 15 paragraph 1 sentence 1 number 3, as well as

4. the input VAT deduction according to § 15 paragraph 1 sentence 1 number 4.

(2) § 25b paragraphs 3 and 5 are not applicable with regard to the cases mentioned in paragraph 1.