BFH rules on input tax deduction conditions for team building events

The German Federal Fiscal Court (BFH) published a decision on 27 July 2023 that denied an employer’s input tax deduction on costs incurred for a team building event for employees (V R 16/21 dated 10 May 2023). The BFH determined that the costs were for the private benefit of the employees rather than for a prevailing business interest. The BFH further determined that the costs incurred per participating employee exceeded the limit for small gifts to employees, which would have allowed an input tax deduction if such limit were not exceeded.

Source: taxathand.com

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