The tax authorities have explained when which apportionment standard is to be applied for the input tax deduction from expenses for mixed-use properties.

The reduced VAT rate in the catering sector will be extended by a further year and the average rate for flat-rate farmers will be adjusted in 2023.

The Federal Fiscal Court has ruled on the requirements for a VAT group between the companies of a GmbH & Co. KG.

A GmbH is not entitled to deduct input tax from services that primarily serve the private interests of its managing director and his relatives.

The Bundestag and Bundesrat have approved a reduction in VAT on gas and district heating as well as tax exemption for inflation compensation premiums paid by employers.

The federal government has passed the government draft for the Annual Tax Act 2022, which also implements parts of the new tax relief package.

As long as the allocation of mixed-use assets has been clearly documented within the documentation period, the tax office can be notified of the allocation decision even after the deadline has expired.

Because a battery system is not absolutely necessary for the production of electricity from a photovoltaic system, input tax deduction is also not possible if the electricity stored with it is later consumed privately.

The German government has agreed on a third relief package with a total volume of around 65 billion euros.

For the duration of the gas levy, the VAT on gas is to be reduced from 19 % to 7 %.