- The Federal Fiscal Court (BFH) ruled that confiscated bribe money reduces the taxable base for VAT.
- The court’s decision ensures that taxpayers are not double-taxed.
- The ruling provides more legal certainty for tax practice and emphasizes the principle of equal treatment.
- The BFH decided in favor of the plaintiff, a former executive who received bribes for awarding contracts.
- The court ruled that while bribe money is generally subject to VAT, confiscated amounts reduce the taxable base to avoid double taxation.
- The BFH based its decision on the jurisprudence of the Federal Constitutional Court and the Court of Justice of the European Union, which require a reduction in such cases to uphold the principle of equal treatment.
Source: bakertilly.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.
