Frequently, plots of land are rented out together with operating equipment. From a VAT point of view, the question then arises as to whether the rental is subject to VAT in its entirety, exempt from VAT in its entirety or partly taxable (share of operating equipment) and – without option – partly tax-free (share of land). In sections 4.12.10 and 4.12.11 of the VAT Circular, the tax authorities tend to use the last of the above-mentioned options, i.e. a so-called apportionment requirement.
Source: www.nwb-experten-blog.de
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