Input VAT and Treatment of Payments in Connection with Turkey Fattening: FG Baden-Württemberg Case

• The case is about the deduction of input tax from services related to turkey farming.
• The dispute is about the extent to which input tax amounts from services related to turkey farming can be deducted and how payments from the “Initiative Tierwohl” (ITW) should be treated for VAT purposes in the year 2018.
• The plaintiff provides taxable and liable deliveries of fattened turkeys to slaughterhouses in Germany, which are subject to taxation at average rates according to § 24 Abs. 1 Satz 1 Nr. 3 UStG in the year 2018.
• The plaintiff has also provided other services for consideration according to § 3 Abs. 9 Satz 1 UStG, such as monitoring animal health, documenting findings, conducting checks on stable climate and drinking water, etc. These services are not subject to taxation at average rates because they are not used for agricultural purposes by the recipient (ITW
• Initiative for Animal Welfare).
• Therefore, an input tax allocation is only applicable for input services.

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.

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