The key points from this case are as follows:
- Input tax deduction for expenses incurred by a business for events called “Betriebsveranstaltungen” (e.g., company Christmas celebrations) is only allowed if these events are not exclusively for the private needs of the company’s employees but are instead related to the specific circumstances of the business’s economic activities.
- The input tax deduction for so-called “Aufmerksamkeiten” (attentions or gifts) with a threshold of €110 per employee and calendar year depends on the overall economic activities of the entrepreneur. This follows the continuation of a previous BFH ruling from 09.12.2010 – V R 17/10, BFHE 232, 243, BStBl II 2012, 53.
- The costs associated with the external framework of a company event must be considered in the calculation of the €110 threshold if it constitutes a unified service.
Source: bundesfinanzhof.de
