Is the administration of a foundation without legal capacity subject to sales tax?

Non-incorporated foundations play a major role in Germany's diverse foundation landscape. Since non-incorporated foundations do not have legal personality, they cannot themselves be the bearers of rights and obligations. They therefore require a natural or legal person to act as the foundation's sponsor. In a decision dated December 5, 2024, the Federal Fiscal Court (BFH) has now dealt for the first time with the question of whether the management of a foundation without legal capacity by the foundation sponsor in return for payment is subject to value added tax.