- BMF has issued a new letter regarding individual questions on the allocation of input tax (§ 15 para. 4 UStG) based on the ratio of turnover (so-called turnover key) and adjusted the UStAE accordingly
- The letter addresses some important issues but leaves some aspects unclear
- The letter distinguishes between total turnover key and partial turnover key, with the former being the basic allocation method and the latter being used for specific purposes
- Total turnover key should only be used when a more precise method is not possible, in line with § 15 para. 4 UStG
- For real estate, a floor area key is generally preferred over an object-related turnover key
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.
