The BFH ruling confirms that input tax can be deducted for the renovation of a historic castle even when financed by public grants and private donations, provided there is an entrepreneurial intent to generate taxable rental income. The decision clarifies that financing does not affect deduction, requires a clear allocation between private and taxable use, and mandates that the tax office determine the exact deductible share.

Germany's mandatory e-invoicing regime for B2B transactions began on 1 January 2025. All businesses must now be capable of receiving EN 16931 compliant e-invoices, with full sending requirements phased in through 2028.