Different Rules for VAT: The Impact of Company Events on Input Tax Deduction

• The BFH has ruled on the question of input tax deduction from operating event costs.
• The previous €110 limit in income tax law is now a tax-free allowance, but a threshold still applies for input tax deduction.
• A planned increase in the tax-free allowance may have implications for VAT law.
• The determination of benefits for VAT purposes has been based on income tax regulations since 2015.
• Operating event costs must be allocated to individual participants.
• Input tax deduction is not possible if operating event costs exceed €110.
• The BFH emphasizes that the determination of benefits for VAT purposes must follow income tax regulations.
• Costs for operating events should be allocated to actual participants, and registered but non-participating individuals increase the cost share for actual participants.

Source: datenbank.nwb.de

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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