- The Federal Fiscal Court (BFH) ruled that bribes seized in criminal proceedings reduce the taxable basis of the affected transactions.
- The court found that the seized bribes, despite being illegal payments, are subject to VAT alongside other payments received for services.
- The BFH determined that the seized amounts reduce the taxable basis, citing the principle of equal treatment and avoiding double taxation.
- The court rejected the argument that the seized amount remaining in the state treasury and not being returned to the payer justifies the double taxation.
- The BFH also dismissed the need for a fairness procedure, which is considered questionable under EU law in VAT matters.
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.
Latest Posts in "Germany"
- German Federal Tax Court Rules on Double RETT Assessment in Share Deal Transactions
- VAT Exemption for Care Services Financed Through Personal Budgets Under German Law
- New VAT Classification for Online Event Services Under German Tax Law
- VAT Correction Claims in Insolvency: Authority and Entitlement Under German Tax Law
- Tax Treatment of Concession Fees in Power Grid Leasing Arrangements
