The work of companies will once again complicated the work of companies is again more complicated, reason, this time, is that the financial management accepts the changes of the Bundesfinanzhof for tax deduction. The Bundesfinanzhof had decided last year that now a deduction for performance or delivery is excluded, unless the performance from the outset for the non-commercial use is intended. If from the outset, that the performance has used a non-economic use, the right to deduct for services or supplies dropped. Instead of the taxation of value duties at the time of their free sampling, no deduction is possible in these cases. The Ministry of Finance has dealt now in detail with these judgments of the German and set new rules for the future deductions. From the writing, an example goes out that the exact handling of input tax deduction requires a particularly detailed knowledge of the value added tax law only partially. The practical example is that so, that an entrepreneur who purchased acquires two concert tickets and a laptop for a raffle, can get no tax deduction for the laptop, while on the other hand the total activity is crucial for the cards.
The current situation is therefore a company to deduct is entitled according to the judgements if it wants to use services of the economic activities for the provision of payment services. There must be a direct and immediate link between output and input power, only indirect purposes are no matter. If the entrepreneurs already in benefits plans the services not for economic activities, but immediately and used only for a free withdrawal is, he is not entitled to the deduction. If an entrepreneur is planning a performance, which is used in part for its economic activities, as well as to the part for non-economic activities, then this must only within the framework claim the deduction of the planned use for the economic activities. It is only if it involves a non-economic activity and a private collection the right to the full deduction for mixed use. In this sense, private withdrawals are only withdrawals for the private use of a company as a natural person, as well as the private use of its staff, but not for example for the use of a non-profit-making purpose of an association. Whether the performance of the contractor is involved, is dependent on whether there is a direct and immediate connection with initial sales. Absence of a direct and immediate link between several output transactions and a certain input sales, companies to deduct can be entitled, if it belongs to the general expenses cost of input services and are therefore part of the price of the services, as well as the overall economic activity brings sales. There is more information about tax issues at LfK – consultancy and tax consulting.