Online message – Thursday, February 29, 2024
Sales tax | Input tax deduction from the insolvency administrator’s invoice (BFH)
If the joint debtor has already ceased his entrepreneurial activity before the opening of bankruptcy proceedings, the input tax deduction from the bankruptcy administrator’s services must be decided based on the joint debtor’s previous entrepreneurial activity. If there is no business continuity aimed at maintaining the company, it is irrelevant if temporary rentals occur in bankruptcy proceedings on the way to liquidation (BFH, judgment of November 23, 2023 – VR 3/22; published on February 29, 2024).
Facts: The plaintiff is the bankruptcy trustee over the assets of K KG, which, among other things, was active in civil engineering and real estate management. Until the bankruptcy proceedings were opened, K KG only provided VAT…