BFH Rules VAT Applicable to Administrative Services for Dependent Foundations, Overturns Lower Court Decision

• The BFH ruling addresses the taxability of administrative services for dependent foundations.
• The case involved a registered association managing assets as a trustee, providing services like bookkeeping and asset investment.
• The tax office considered these services taxable, but the Münster tax court initially ruled otherwise.
• The BFH overturned the Münster court’s decision, stating that a taxable service can relate to a special fund regardless of the recipient’s financial interests.
• A legal relationship must exist between the service provider and recipient, with mutual services exchanged.
• The association had contracts with founders for administrative services, constituting independent agency agreements.
• The BFH argued that the founder received a consumable benefit from the asset management.

Source: assets.kpmg.com

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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