VAT Deduction for Health Resorts: BFH Ruling on Municipality’s Economic Activity

• BFH ruling on input VAT deduction for health resorts
• Municipality operated health resort under municipal law
• Municipality financed facilities with spa tax income
• Tax authorities limited input VAT deductions
• CJEU ruling stated health resort facilities not subject to VAT
• Input VAT deduction denied for municipality in this case

Source: hub.kpmg.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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