Judgment of 17 July 2024, XI R 8/21
- The Federal Fiscal Court ruled on July 17, 2024, regarding input tax deduction for the supply of tenant electricity
- The case involved the distinction between a separate taxable supply of electricity and a non-taxable rental of residential space
- The court determined that supplying electricity to tenants from a photovoltaic system is a separate taxable service, allowing for input tax deduction
- The decision upheld the ruling of the Lower Saxony Finance Court from February 25, 2021
- The costs of the appeal proceedings were to be borne by the defendant
- The case involved a landlord who installed photovoltaic systems on rental properties and supplied electricity to tenants, billing them separately based on individual consumption.
Source: bundesfinanzhof.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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