- The BFH ruling of December 5, 2024, clarifies that administrative services for dependent (fiduciary) foundations are subject to VAT if they relate to special assets, regardless of whether the beneficiary pursues their own or third-party interests.
- For VAT liability, there must be a direct link between the service and consideration, and the recipient must be identifiable and receive a consumable benefit.
- The founder behind the foundation can be considered the recipient of the administrative and advisory services.
- The VAT Application Decree (UStAE) is amended to include these principles for the treatment of fiduciary foundations.
Source: bundesfinanzministerium.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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