- The BMF letter dated May 17, 2024, addresses the VAT-related assignment of services to a business.
- Assigning received services to a business is crucial for VAT purposes to exercise the right to input tax deduction under § 15 UStG.
- Disputes often arise with tax authorities regarding the validity and timeliness of assignment decisions for partially business-used items.
- The BMF letter (III C 2
- S 7300/19/10002 :001, NWB GAAAJ-67248) provides clarification on this issue.
- The article aims to present and contextualize the BMF letter.
- When a business receives input services, it must determine if they are exclusively for business use (assignment requirement), not for business use (assignment prohibition), or partially for business use (assignment choice).
Source: datenbank.nwb.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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