- The VAT treatment of homeowners associations becomes relevant in rental agreements when there is a desire for VAT-liable billing with corresponding input tax deduction.
- This issue is common in the rental of commercial spaces by partial owners, as tenants often prefer VAT-liable treatment at the homeowners association level.
- The BGH decision from January 15, 2025, addresses civil and VAT-related issues in this context.
- The decision discusses a three-step billing process involving external parties, the homeowners association, owners, and tenants.
- Generally, services provided by homeowners associations to their members are exempt from VAT according to § 4 Nr. 13 UStG.
Source: datenbank.nwb.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.
