- The BMF issued guidance on the VAT treatment of permanently loss-making institutions that receive public subsidies, implementing recent ECJ and BFH case law.
- The VAT Application Decree is amended in several areas as a result.
- The main issue is whether such institutions are entitled to input VAT deduction, as their expenses consistently exceed their revenues.
- The ECJ ruled that symbolic prices do not constitute a taxable supply if cost coverage is minimal (e.g., 3% in the Gemeente Borsele case).
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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