Priority of More Precise Allocation Keys Over Total Turnover-Based Key: BMF Guidelines 2024 Update

• Input VAT deduction requires direct link between input and output transactions
• If direct allocation not possible, total turnover-based allocation key can be used
• Total turnover-based allocation key is subordinate to more precise allocation keys
• Taxable person can choose more precise method for input VAT apportionment
• BMF considers area-based allocation key for buildings to take precedence
• Special supplies that distort result should not be included in allocation key calculations
• Input VAT allocation key from previous year can be used in periodical VAT returns

Source: kmlz.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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