BFH: State allocation not third-party consideration; no hobby in VAT law

• Land allocations to a municipality for the construction of a ferry dock are not considered payment if they are for structural policy reasons, not for a service provided by the municipality
• Being an entrepreneur does not require making a profit; typical entrepreneurial behavior is still considered even in cases of loss
• The method of financing (through revenue from economic activities or subsidies) for input services related to taxable output transactions does not affect the right to deduct input tax
• A public law entity is considered to have only one business for VAT purposes, so all its economic activities should be included in the VAT assessment issued to it.

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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