14 October 2025
Input VAT Deduction: Germany Clarifies Acceptance of Invoices in Other EU Languages
The German Ministry of Finance (BMF) issued a circular on 17 September 2025, providing much-needed clarification on the acceptance of mandatory invoice details in foreign EU languages. Previously, companies faced uncertainty during tax audits, where input VAT deductions could be challenged if an auditor could not understand, for example, a Polish or French description of services, often leading to costly translation requests.
The new guidance confirms that invoice details in any official EU language are generally acceptable for input VAT deduction, provided the tax authorities can easily and unambiguously understand them. This applies especially to standardized goods or services with commonly known descriptions. The circular aims to reduce bureaucracy and strengthen the principles of the EU single market. However, for highly complex or unique descriptions, the tax office may still reserve the right to request clarification.
Key takeaway / recommendation
This new guidance provides welcome legal certainty for businesses operating across the EU and reduces the need for routine translations of intra-community invoices. It is a good opportunity to review internal invoice-processing guidelines to ensure VAT recovery is maximized with minimal risk. We can help you assess how this clarification impacts your specific accounts payable processes.
Reference / Link to document
BMF circular dated 17 September 2025