Did you know that bribes are subject to VAT?

Bribes collected reduce VAT. The Value Added Tax Act does not recognize "good morals" and bases taxation on purely economic aspects in a value-neutral manner. Accordingly, the granting of advantages to competitors in return for payment during the procurement process is a service subject to VAT - regardless of whether it is legal or illegal.

A bribe-taking engineer has now won a case before the Federal Fiscal Court that he can reduce the VAT on his bribes if he has to pay the proceeds of his crime to the state justice fund. His tax office had still taxed the bribe at 19 % and had not deducted the subsequent repayment in the criminal proceedings.

It's best to keep a clean slate from the outset 😉.

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#TBribery payments #Sales tax law #BFH ruling #Tax law #WSB