- The Federal Ministry of Finance in Germany has published new regulations on entrepreneurial status and input VAT deductions for research institutions.
- The new guidance represents a change from the tax authority’s previous position.
- Under the new guidance, basic research may be considered part of the entrepreneurial sphere for input VAT deduction purposes if it helps increase sales activity and strengthen market position.
- The guidance does not require a strong connection between basic research and business sales activities if they are in the same organizational unit.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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