Tax & Legal

The Supreme Tax Court has ruled that where a limited taxpayer has no permanent establishment (branch/permanent representative) located in Germany, the add-back of fictitious business expenses cannot be applied.

The Supreme Tax Court has held that the sale of an investment in a company is a non-business related activity and furthermore VAT-free as a sale of shares. The right to deduct the related input tax depends on the costs being not linked only to the sale.