The Supreme Tax Court ruled that the granting of a right to purchase goods at a reduced price (in the form of a “membership”) constitutes an independent service for VAT purposes and not just a service ancillary to the subsequent sale of goods. Even if the supermarket sells goods that are subject to both the standard tax rate (19%) and the reduced tax rate (7%), the standard tax rate is to be applied to the membership fee.
Source: PwC DE
Latest Posts in "Germany"
- New Guidelines for Vehicle-Specific VAT Declaration Forms Released by German Ministry of Finance
- Germany Updates GoBD Rules to Reflect Mandatory E-Invoicing
- Template for VAT Declaration on Individual Vehicle Taxation Released by Federal Ministry of Finance
- VAT in Germany – A comprehensive up to date guide
- Germany Publishes Second GoBD Update to Align with E-Invoicing
