- A new rule in the “Act to modernize and digitalize the fight against illegal employment” sets floor area as the primary method for allocating input tax on mixed-use properties.
- If the different parts of a building have not comparable features/equipment, an objective turnover-based key may still be used.
- The change may require input tax corrections starting in 2026.
- The issue concerns long-running disputes with the tax authorities over the correct allocation key for real estate.
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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