No input tax deduction for subsequent decontamination costs

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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