BMF Accepts BFH Ruling on Input Tax Deduction for Indirect Causation

• The BMF accepts the BFH case law on input tax deduction in the case of indirect causation.
• The BFH recognized the input tax deduction for construction costs in a case involving a quarry company.
• The key factor was that the input service did not exceed what was necessary for the company’s own business activity.
• The costs for the input service were calculated in a way that did not exceed the value of the output transactions.

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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