- Taxable persons can allocate goods used for both economic and non-economic purposes to their economic sphere
- Allocation decision must be documented in a timely manner
- Federal Ministry of Finance addresses allocation of single asset to economic sphere based on current jurisprudence
- Allocation to economic activity implies acting as a taxable person
- Decision to use higher proportion for economic purposes does not have retroactive effect on input VAT deduction
- Allocation decision must be made at time of procurement and documented by statutory deadline for tax returns
- Objective evidence of allocation to economic sphere includes purchase/sale under company name, business insurance, accounting treatment, building application documents
- Lack of objective evidence requires explicit notification to tax office before documentation deadline
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.
