If legislators want to promote certain measures, this is often done via subsidies and grants. They are granted, for example, for the installation of a heat pump, certain insulating measures or the purchase of an electric vehicle. Entrepreneurs who receive corresponding services have the right to vote according to R 6.5 EStR. You can set the subsidy as a reduction in the AfA tax base or tax it directly as operating income.
In the case of grants, however, the differences between income and sales tax law must be considered. For sales tax there is regularly a lack of a fee that is granted in return for a certain service. Thus, there is no exchange of services between entrepreneur and state.
First principle: What are grants?
The state wants to specifically promote certain investments. In the years around 2023, for example, this concerns expenditures that private individuals and entrepreneurs make in the sense of climate protection. For example, you will receive the following grants from the tax office or promotional authorities such as BAFA:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.