The German Federal Tax Court (BFH) held (file ref. V R 32/20) that a taxpayer is entitled to deduct input value added tax (VAT) with respect to “outplacement consultation” services on the basis of a primary business interest. The taxpayer secured the services to achieve a targeted reduction of staff by offering individual employees with non-cancellable and open-ended contracts support in establishing a new position (e.g., interview training).
Source KPMG
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