The Federal Fiscal Court granted a municipality input VAT deduction from the construction of a suspension rope bridge, despite no consideration having been charged for the use of the bridge. Following the jurisprudence of the ECJ in the legal case Sveda, the Federal Fiscal Court recognised the direct and immediate link due to the proximity of the bridge to paid parking spaces. A very welcome windfall for the plaintiff municipality. However, the Federal Fiscal Court’s decision of 20 October 2021 (XI R 10/21), which was only published last week, is not just interesting for legal entities under public law. Rather, the Federal Fiscal Court provides numerous indications that input VAT deduction may also be possible for procured supplies which, at first glance, are not directly and immediately linked to taxable output supplies.
Source: KMLZ
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