- A business may deduct input VAT on consulting costs used to enforce a claim if that claim arises from an actual or even merely intended business activity.
- This remains true even if the matter ultimately ends in a non-taxable damages payment.
- In the case described, a GmbH signed a 2018 operator contract for a “vehicle toll” project.
- Payment was to start only when the project actually began, but the client terminated the contract in 2019 before the project started.
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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