- Landlords often provide additional supplies along with property rental
- Tax authorities classify landlord’s energy supply as ancillary to rental
- ECJ ruled that landlord’s energy supply should be assessed independently
- Federal Fiscal Court clarified that input VAT deduction is not available for heating system
- Landlord installed PV systems on rental properties and supplied electricity to tenants
- Landlord claimed input VAT from costs of PV system, tax office denied deduction
- Federal Fiscal Court ruled that supply of tenant electricity is an independent taxable supply
- Court explained qualification of uniform supply or independent supplies
- Tenant has option to choose suppliers and terms of use, indicating independent supplies
- Tenant is free to choose electricity supplier due to statutory prohibition of coupling with rental
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.
