- 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.
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.