In a tax case regarding VAT and joint ownership communities, the Federal Fiscal Court (BFH) reaffirmed that a joint ownership community does not provide services for consideration as an entrepreneur, based on BFH judgments from November 22, 2018, and May 7, 2020. The case involved a dispute over an input tax correction for the 2015 tax period. The taxpayer, who had previously leased a property with a hotel to his son, transferred partial ownership to his wife and subsequently sold the property to their son. The tax authority claimed a tax correction, but the BFH upheld that joint ownership communities cannot perform taxable services. The case also cited a European Court of Justice (EuGH) ruling emphasizing the need for economic independence in determining taxable services. The decision also noted that the specific tax law changes in 2022 did not apply to this case.
Source: datenbank.nwb.de
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