Economic Activity

The economic activities of the public sector have increasingly become the focus of case law and financial administration. As soon as the public sector becomes active under civil law, it is considered to be an entrepreneur according to current case law and is therefore subject to VAT.

VAT and input tax deduction for municipalities

The permanent expansion of taxable economic activities by the tax authorities not only leads to transactions subject to VAT, but also opens up the possibility for the municipality to claim the right to deduct input tax.