- The input discusses the importance of input tax deduction for spa towns.
- Many spa towns levy tourist taxes, spa fees, spa charges, or tourist taxes on (non-local) spa guests as payment for the opportunity to use services of their spa facilities.
- The question arises whether and to what extent there is a right to input tax deduction.
- The FG Baden-Württemberg initially ruled that a spa town operating spa facilities against a tourist tax is not engaged in entrepreneurial activity.
- The BFH asked the ECJ in the appeal proceedings whether the provision of a spa facility constitutes an economic activity even if the facility is accessible to non-tourist tax-paying individuals at any time.
- The ECJ denied this, leading to a predictable subsequent decision by the BFH.
- The situation is different, however, if the spa facilities can only be used by individuals subject to spa fees.
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.
