Germany: Government clarifies the decision on VAT Deduction for input services

Spread the love

The German Ministry of Finance issued Tax Court Decision No. XI R 13/19, clarifying VAT deduction rules for input services purchases. By managing a real estate fund, a German investment firm supplied input services to clients. The taxpayer requested input tax deductions, which the tax office rejected. 


The tax court denied the taxpayer’s petition on appeal, saying that: 


  • VAT paid for input services is not deductible if the expenditure is incurred in connection with VAT-exempt management services  
  • The taxpayer did not meet the legal requirements for claiming the input VAT deduction. 



Source: bundesfinanzhof.de   

Follow us on LinkedIn to keep up with the latest VAT news

Join us!

Subscribe to our monthly newsletter
  • This field is for validation purposes and should be left unchanged.


Get the latest VAT information directly in your inbox and stay up to date with all VAT developments around the world.

You have Successfully Subscribed!