The Federal Ministry of Finance (BMF) has supplemented the German Administrative VAT Guidelines (UStAE) concerning the VAT treatment of the passing-on of costs, thereby regulating typical cases of application. The BMF also provides further valuable guidance on the VAT classification of the passing on of costs. It has adopted the legal principles of the German Federal Fiscal Court (BFH) which the court established last year. Accordingly, it is crucial to determine in which party’s interest the costs are incurred.
Source: kmlz.de
