Input Tax Deduction and Gratuitous Value Transfers: New BMF Guidelines Effective from 2026

• The BMF has issued guidance on input tax deduction and gratuitous value transfers for both business and non-business purposes, including changes in use between these areas.
• The resulting amendments to the VAT Application Decree (UStAE) are outlined in the BMF letter dated April 1, 2026.
• The principles of this letter apply to all open cases.
• For periods before January 1, 2027, it is acceptable for businesses to continue applying the previous administrative practice regarding input tax deduction and gratuitous value transfers.
• The full text of the BMF letter is available on the BMF website.

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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