Proportion of deductible input VAT relating to mixed used buildings is generally determined based on an area based allocation formula.
With judgment dated 7 May 2014 (V R 1/10), the Federal Fiscal Court (Bundesfinanzhof, BFH) in principle confirmed its prior jurisprudence regarding the deductibility of input VAT in case of mixed used buildings. At the same time, however, the court renounced a formerly expressed opinion according to which the taxpayer could in certain cases choose the calculation method of input VAT ratio. It rejected a decision of the Fiscal Court Münster, which had come to the conclusion that the incompatibility of input VAT allocation under current German law with European law gives reasons for the taxpayer to choose the calculation method of input VAT ratio. Nonetheless, the interpretation of certain input VAT provisions compliant with European law gives leeway for tax planning.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.