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In the context of the new regulation of sec. 2b of the German VAT Act, many legal entities under public law are falling within the scope of VAT more quickly and more frequently. This often goes hand in hand with the right to deduct input VAT. It is good and important that the tax authorities, with a letter of the German Federal Ministry of Finance, are now providing administrative simplifications for the deduction and adjustment of input VAT.
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The German Federal Fiscal Court has given the ECJ the opportunity to overturn the national apportionment requirement for supplies of accommodation services. The perseverance of the hotel industry could soon be rewarded. Those businesses affected should consider taking precautions in order to benefit retroactively from a legislative change.
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No pleasure goes untaxed. This also applies to the upcoming 2024 European Football Championship. Business transactions related to the Championship must be correctly assessed under VAT law so that the hoped-for summer fairy tale in Germany does not turn into a VAT nightmare.
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