VAT on letting and input tax

VAT explained: exemption for residential space, option for commercial space, holiday home rules, and input tax correction according to Section 15a UStG.

FAQ

Is my holiday apartment subject to VAT?

If the letting is short-term and hotel-like, and you exceed the small business threshold (€22,000 turnover), 7% VAT usually applies.

Can I voluntarily pay VAT to save taxes?

Only for commercial tenants who themselves use the space for VATable activities. For residential space, opting for VAT is not possible.