- The Baden-Württemberg Fiscal Court held that a KG cannot deduct input VAT on tax advisory costs related to the gift transfer of limited partnership interests by its partners.
- The court found that these advisory costs were not incurred for the KG’s business, but in connection with the private transfer of shares.
- Simply paying the advisory fees by the company does not create an untaxed supply of goods/services to the partners, because money is not a “goods/item” under the VAT rules.
- The court allowed an appeal to the German Federal Fiscal Court (BFH).
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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