- Landlords provide additional supplies like heating and hot water to tenants
- ECJ ruled that energy supply by landlord should be assessed independently
- Plaintiff installed new heating system and hot water tank in rented flats
- Plaintiff opted to be liable to VAT on supplies of heating and hot water
- Tax office considered supply of heating and hot water as ancillary to letting
- Fiscal Court Münster allowed input VAT deduction, but Federal Fiscal Court disagreed
- German Federal Fiscal Court ruled that costs of heating system installation are linked to VAT exempt letting service
- Input VAT from installation costs of heating system is not deductible for landlords.
Source: kmlz.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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