The supply of electricity by a landlord can, under certain conditions, constitute an independent taxable supply. The supplier of tenant electricity is then entitled to full input VAT deduction from the purchases that are directly and immediately related to the taxable supply of electricity. In its decision published on 26 September 2024, the Federal Fiscal Court clarifies the specific conditions required for a taxable supply to be deemed to be independent and explicitly deviates from the view of the tax authorities (sec. 4.12.1 para. 5 sentence 3 of the German Administrative VAT Guidelines).