BFH Rules on Input Tax Deduction for Insolvency Administrator’s Services in Pre-Insolvency Period

• The Federal Fiscal Court (BFH) ruled on the input tax deduction from the invoice of the insolvency administrator
• The decision on the input tax deduction from the insolvency administrator’s services depends on the former entrepreneurial activities of the debtor
• The input tax deduction is allowed for services used for taxable outputs, but not for services used for tax-exempt outputs
• The case involved an insolvency administrator claiming input tax deduction for services provided before the insolvency proceedings
• The tax office granted only a partial input tax deduction, as some services were used for tax-exempt outputs
• The tax office’s decision was challenged in court, and the Fiscal Court ruled in favor of the insolvency administrator

Source: haufe.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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