Federal Ministry of Finance Guidelines on Allocation of Goods to Economic Activity: Key Considerations and Requirements

Taxable persons can allocate goods used for both economic and non-economic purposes to their economic sphere
Allocation decision must be documented in a timely manner
Federal Ministry of Finance addresses allocation of single asset to economic sphere based on current jurisprudence
Allocation to economic activity implies acting as a taxable person
Decision to use higher proportion for economic purposes does not have retroactive effect on input VAT deduction
Allocation decision must be made at time of procurement and documented by statutory deadline for tax returns
Objective evidence of allocation to economic sphere includes purchase/sale under company name, business insurance, accounting treatment, building application documents
Lack of objective evidence requires explicit notification to tax office before documentation deadline

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.