VAT Deduction from Heating System? Nice Idea, but Rejected by BFH

• The BFH denied a landlord the right to deduct input tax from the renewal of a heating system
• The landlord had renewed the heating system in a house with two apartments for residential purposes
• The BFH argued that the German operating cost regulation does not allow for passing on one-time maintenance costs to tenants
• The FG Münster had previously ruled in favor of the landlord, citing a judgment from the ECJ that considered rental of property and supply of water, electricity, and heat as separate services
• The issue of dividing services in tax law is complex and constantly evolving
• The matter is still under review by the XI. Senate of the BFH

Source: nwb-experten-blog.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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