- 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.
Latest Posts in "Germany"
- Second BMF Letter on E-Invoicing: New Error Categories and VAT Deduction Implications
- Full Mineral Oil Tax Due for Unauthorized Mixing; Taxpayer Liable Regardless of Mixing Circumstances, BFG 2025
- Customs Classification of Composite Materials: Key Criteria and Recent BFG and VwGH Decisions
- VAT Exemption for Independent Teachers’ Instruction at Vocational and General Education Institutions Confirmed
- VAT Exemption for Independent Teachers’ Educational Services at Vocational Institutions Confirmed by BFH
