NEW: Repayment of tax credits despite accommodations for payment

The Ministry of Finance has created a statutory exemption – limited in time until 30 September 2020 – in order to further relieve the burden on taxpayers. Thus, it is now possible to obtain disbursement of a tax credit (e.g. from an advance turnover tax return) even if there is an accommodation for payment on the tax account.

The only prerequisite for disbursement is that the taxpayer has requested an accommodation for payment via FinanzOnline, or an accommodation for payment has already been approved by way of decision.

Here, three cases can be distinguished:

  1. The taxpayer was served a decision after 10 May 2020 reporting a tax credit:
    The taxpayer submitted an advance turnover tax return or other fiscal self-assessment after 10 May 2020, resulting in a tax credit:
  2. If the taxpayer wishes refunding of this tax credit, a repayment application must be submitted via FinanzOnline no later than the date of the tax return or self-assessment. PLEASE NOTE:  Mere notes on payment vouchers cannot be considered!In this case, an application for repayment of the tax credit can be submitted via FinanzOnline within one month of the serving of the decision. For this purpose, an additional application text has been inserted into the repayment application on FinanzOnline. This text must be checkmarked in order to submit the application.
  3. The taxpayer applies for a premium, refund or compensation (e.g. refund of the standardised consumption tax) after 10 May 2020: Anyone wishing repayment of such a credit note must submit a repayment request via FinanzOnline at the same time as the application (on the same day).

In the following cases, a tax credit cannot be repaid in full:

Arrears on another tax or penalty account
If there are arrears on another tax or penalty account and no accommodation for payment has been applied for via FinanzOnline for these arrears or already been approved, they will be offset against the existing credit.

The credit is the result of a favourable preliminary appeal decision or a favourable decision of the Federal Tax Court
In order to ensure correctness of the financial management of the tax account, no repayment is possible in these cases if the tax in question has not yet been paid.

Advance payments for income tax or corporate income tax are still to be made
In the event of a credit from an income or corporation income tax assessment notice, this is to be offset with priority against any advance payments not yet paid. The credit is therefore reduced by the amount of the advance payments not yet repaid.

The taxpayer has made use of the provision in § 26 of the UStG in connection with the import turnover tax (EUSt)
In this case, the import turnover tax is debited to the tax account of the tax office, and the amount is entered as input tax into the advance return for turnover tax. In order to avoid unequal treatment in the context of VAT, a tax credit (especially from an advance return for VAT for the same period) cannot be repaid without deductions if an import turnover tax is posted to the tax account. The credit is therefore paid out less the amount of the import turnover tax.