- The VAT treatment of administrative services for dependent foundations was unclear until the German Federal Fiscal Court provided clarity.
- The court specified criteria for VAT assessment of trustee activities, focusing on whether trustees provide supplies subject to VAT to themselves or the original founder.
- Trustees and other taxable persons with special funds must review their settlement practices following the ruling.
- A registered association managed assets as a trustee from 2014 to 2018, handling foundation assets separately from its own.
- The association set up individual and T-foundations, maintaining umbrella foundations for charitable purposes.
- The association charged an annual foundation contribution and reimbursed itself for costs from T-foundation assets.
- The Fiscal Court initially ruled that administrative services were not subject to VAT, viewing them as internal transactions.
- The BFH confirmed this but noted that administration of foundation assets could be a supply to the founder.
- A taxable service may exist if assets are subject to special restrictions, kept separate, and the administrator receives consideration.
- The BFH highlighted that an independent agency agreement for services for consideration was concluded, indicating a taxable supply.
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.
