The Hessen Tax Court ruled on the VAT and trade tax implications of concession fees paid by a power grid lessee to a city, which was the lessor. The network company (lessor) argued the fees were merely passed through and not part of its taxable revenue, but the tax office countered that the lessee’s assumption of these costs was a component of the lease payment. The court determined that when a power grid lessee bears these municipal concession fees per the lease contract, they represent a taxable revenue component for the lessor. Furthermore, the court held that the VAT exemption under section 4 number 12 letter a of the VAT law does not apply in this specific situation.
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.
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