Bundesfinanzhof: Electricity supply to tenants is an independent service – implications for landlords

• The Federal Fiscal Court (BFH) ruled that electricity supply to tenants is a separate service
• The distinction between a single service and multiple individually taxable services is a recurring issue in VAT law
• Landlords providing electricity to tenants must consider the implications for VAT exemption and input tax deduction
• The BFH decision confirmed that electricity supply is a separate taxable service, allowing landlords to claim input tax deduction
• The court emphasized the tenant’s freedom to choose their electricity provider, separate contracts, and individual billing for electricity usage

Source: umsatz-steuer-beratung.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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