Can luxury company cars be eligible for input tax deduction? Recent court rulings provide insights

• The current case law of the FG Hamburg and the BFH shows the conditions and limits of the input tax deduction prohibition for luxury company cars.
• The FG Hamburg has made two rulings on the input tax deduction for luxury company cars.
• In one case, a businessman was able to claim an input tax deduction of approximately €30,000 for a Ferrari California.
• In another case, a businessman was denied an input tax deduction of approximately €48,000 for a Lamborghini Aventador.
• The FG Hamburg considered the Lamborghini Aventador to be an unreasonable representation expense.

Source: datenbank.nwb.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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