Deductibility of Input VAT from Invoice of Insolvency Administrator in Full Amount

• If a company has ceased operations before the start of insolvency proceedings, the input tax from the invoice of the insolvency administrator is fully deductible
• The company must have only made sales that entitle to input tax deduction before ceasing operations
• It is not relevant if the insolvency administrator generates tax-exempt rental income
• In insolvency proceedings, the focus is on liquidation rather than continuation of the business
• The insolvency administrator’s role is to handle the claims of creditors related to the former business activities of the debtor

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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