ECJ Ruling: German Input VAT Deduction Rules for Biogas Plant Heat Transfer Case

• ECJ issued preliminary ruling on German input VAT deduction rules
• Case involved biogas plant providing free heat without specifying payment
• Tax Authority determined heat transfer was free and calculated taxable amount
• Tax Authority confirmed findings in VAT assessment and dismissed taxpayer’s complaint
• Federal Finance Court referred questions to ECJ for ruling
• ECJ held that transfer of free heat constitutes supply of goods for consideration
• Specific use of heat to acquire right to deduct VAT is irrelevant
• Cost price of transfer includes direct and indirectly attributable costs, including financing costs

Source: news.bloombergtax.com

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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