- The Federal Fiscal Court ruled that costs for decontaminating properties do not allow the holder to deduct input VAT if the property is now used for non-genuine tax-exempt transactions, regardless of previous VAT-related business activities.
- This ruling emphasizes that even if decontamination relates to past taxable activities, it does not create a valid basis for input VAT deductions when the property’s current use is tax-exempt.
- The court’s position indicates a disconnect between past business causation and current property use, suggesting that legal obligations to decontaminate do not justify subsequent VAT deductions
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