- The operator of a workshop for the blind delivering products to other EU countries is tax-exempt under two regulations.
- The first exemption excludes input tax deduction, while the second does not.
- The tax authority believes the first exemption takes precedence, excluding input tax deduction.
- The Lower Saxony Fiscal Court disagrees, and the Federal Fiscal Court will decide on the matter.
- The plaintiff, owner of a recognized workshop for the blind, delivered goods to an Austrian company, treating them as tax-exempt intra-community supplies.
- The tax office argued these supplies should exclude input tax deduction, citing a 2011 BMF letter.
- The Lower Saxony Fiscal Court ruled in favor of the plaintiff.
- According to § 4 Nr. 19 UStG, sales by recognized workshops for the blind are tax-exempt, but can be treated as taxable if sold to another business.
- The EU law generally considers these sales taxable, but national exemptions are allowed under certain EU directives.
Source: nwb-experten-blog.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.
