- Federal Fiscal Court ruled that state grants to local public transport are not subject to VAT
- Municipality received grants for construction of landing stage for public ferry transport
- District grant was subject to VAT, state grant was non-taxable
- Municipality entitled to full input VAT deduction as taxable person
- State allocation was for structural policy reasons, not remuneration for services
- State grant was for general funding for transport infrastructure, not specific project
- Tax office’s objection to state allocation being subject to VAT was rejected by Federal Fiscal Court
Source: kmlz.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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