Germany MOF Releases Court Decision Explaining Tax Liability of Services Received by VAT Group Companies

The German Ministry of Finance Sept. 28 released Tax Court Decision No. VR 32/19, explaining the tax liability for services received by entities with common ownership. The taxpayer was the majority shareholder of various companies, one of which provided construction services to other entities as tax-free property development activities. The construction services company hired third parties, but didn’t pay VAT. The tax office assumed a tax group between various companies and taxed the services. Upon appeal, the tax court held the taxpayer liable for taxes from construction services obtained from the third parties as a controlling company. [Germany, Ministry of ...