No input VAT deduction upon acquisition of luxury cars

The Supreme Tax Court dismissed the appellants’ claim for input VAT for two luxury cars, on the basis that they were not allowable business expenditure for VAT purposes. An entrepreneur is only entitled to an input VAT deduction from an occasional purchase of a passenger car if there is an unambiguous connection with an intended business activity or if this contributes to expand his main line of business.

Source: PwC DE

---

---