Tax & Legal

Categories: All (3 found)

1. 19.10.2025

   Supreme Tax Court defines tax principles for rental of holid ...

   In a most recent decision, the Supreme Tax Court held that a residential apartment that is rented exclusively to tourist guests and is kept available for this purpose during the rest of the year is generally to be recognized for tax purposes. It can generally be assumed that the taxpayer intends to generate a surplus income if the rental period does not fall significantly (i.e., by at least 25%) below the usual local rental period for residential apartments.

   Categories: Supreme Tax Court cases

   Keywords: rental, Holiday accomodation
2. 30.10.2023

   Trade tax addback of expenses for the provision of holiday h ...

   The Supreme Tax Court decided that payments made by a provider of holiday lettings to the respective owners of the holiday homes in order to sublet them himself to travelers may qualify as rental within the meaning of Section 8 No. 1 letter a Trade Tax Act and must in part be added back to the trading profit subject to trade income tax.

   Categories: Supreme Tax Court cases

   Keywords: trade tax addback, Holiday accomodation, ...
3. 12.10.2017

   VAT: Referrals to European Court of Justice on imputed taxat ...

   Supreme Tax Court judges have expressed doubt both upon the previously uncontested obligation of entrepreneurs subject to the so-called imputed taxation (“Sollbesteuerung) to pre-finance VAT and upon the exclusion of the reduced VAT rate on the provision of holiday apartment rentals according to the so-called margin-scheme taxation. The Supreme Tax Court has therefore referred two cases to the European Court of Justice (ECJ) (i) referral of 21 June 2017: V R 51/16; and (ii) referral of 3 August 2017: V R 60/16.

   Categories: Supreme Tax Court cases, European Court ...

   Keywords: Leasing, VAT, Holiday accomodation, Marg ...