- BMF has issued a statement on the VAT treatment of subsidies
- The distinction between a payment for a service and a non-taxable genuine subsidy is based on the recipient and the purpose of the payment
- Payments made for the recipient to carry out their activities are considered genuine subsidies
- Mutual agreements for payments may not be considered a service exchange if they are made for the recipient’s general ability to operate
- These new principles apply to all open cases
Source: haufe.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.
