Input VAT adjustment for the subsidiary company (BFH)

– The deduction of input tax must be adjusted for the subsidiary company even if the supplier successfully challenges the payment made to the parent company.
– The case involves the insolvency administrator of S GmbH and T GmbH, who were in an organizational relationship.
– T financed the costs of S while the organizational relationship was in effect.
– The insolvency administrator of T successfully challenged payments made to suppliers of S.
– The tax office increased the VAT assessment for S based on the successful challenges.
– The insolvency administrator argues that the benefits obtained from the challenges should not be claimed against the assets of S.
– The court ruled that the lower court did not consider whether the insolvency administrator of S acquired a claim against the third party, which would be a liability of the insolvency estate of T.
– The court also stated that further findings are needed to determine if the conditions for adjusting the input tax deduction under § 17 UStG are met.

Source: datenbank.nwb.de

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