Application of Margin Taxation on “Coffee Trips” – Doubts Raised by BFH Decision

• “Kaffeefahrten” are currently considered as travel services
• Person transportations conducted for a fee fall under § 25 UStG
• This leads to the exclusion of input tax deduction for travel services
• Doubts have been raised by the BFH on whether “Kaffeefahrten” are actually travel services
• Questioning the application of input tax exclusion under § 25 Abs. 4 Satz 1 UStG in case of a negative margin

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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