- The BFH has allowed an appeal in a case on input VAT allocation for building विस्तार/expansion works in mixed-use properties.
- The key issue is whether VAT on expansion-related construction costs is deductible, even if the new space is used for tax-exempt supplies, when the work also benefits the existing building.
- The construction in question improved the old building’s structure and utility systems, not just the new extension areas.
- The case is important for how input VAT under Section 15(4) UStG is to be apportioned for combined renovation/expansion projects in mixed-use real estate.
Source: ecovis-kso.com
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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