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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.


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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