Decision XI B 73/23: Double taxation, no unified service, third-party services not VAT-exempt

• Double burden of real estate transfer tax and sales tax; no single service by multiple entrepreneurs; services of third parties not exempt from sales tax
• Previous: Saxon Finance Court, October 24, 2023, Ref: 2 K 398/23
• Services of third parties that are considered separate from the tax-exempt turnover are not exempt from VAT
• This applies even if the person transferring real estate or building rights and the person constructing the building are closely related
• The appeal of the plaintiff against the decision of the Saxon Finance Court on October 24, 20232 K 398/23 is dismissed as unfounded
• The question of whether a personal connection between the person transferring real estate or building rights and the person constructing the building leads to a single service and therefore VAT exemption is not in need of clarification according to the consistent jurisprudence of the BFH.

Source: bundesfinanzhof.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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