Importance of Input Tax Deduction for Spa Facilities in Island Municipality B BFH Decision

The input discusses the importance of input tax deduction for spa towns
Many spa towns levy taxes on visitors for using their spa facilities
The question arises whether these towns are entitled to input tax deduction
The BFH ruled that if spa facilities are freely accessible to everyone, there is no exchange of services for tax purposes
However, in the case of Island community B, where only tax-paying individuals could use the spa facilities, the BFH considered it as an exchange of services

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.