Home office renovation only partially cuts taxes

Munich (dpa / tmn) – If you rent a grandma’s apartment as a home office from your employer, you can save the tax on a renovation: the VAT charged for the works can be claimed as a reduction in the input tax – but with restrictions. This was decided by the Federal Tax Court (Az .: VR 1/18).

This means that the cost of renovating a sanitary block can also be claimed, that is to say for the toilet and the sink. However, it is not possible to take them into account for the shower and the bathtub.

The negotiated case concerned the owners of a building who lived on the upper floor. They rented an apartment from Grandma with an office, conference room, kitchen and bathroom on the ground floor subject to sales tax as a home office from the complainant’s employer.

During the renovation of the apartment, 25,780 euros were incurred for the costs of craftsmen. The owners then claimed the sales tax due as input tax. The tax office did not recognize the amounts after a site visit.

The Federal Tax Court only partially accepted the plaintiffs. Professional use of the apartment could also include a sanitary room – but not a shower and bathtub.

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