The change is based on the European Court of Justice’s judgment in case C-288/16 L.Ĉ. regarding the scope of the VAT exemption for transport services in connection with exports. The German Federal Ministry of Finance has already implemented the principles of the CJEU ruling in its letter of 6 February 2020. However, the application of the regulation was given a transition period, which expired on 31 December 2021. In the meantime, the German Ministry of Finance has issued further letters (14 October 2020 and 27 September 2021) which clarify the application of the above-mentioned VAT exemption. With the new German Federal Ministry of Finance letter, the German VAT Decree (Section 4.3.2 Paragraphs 3 and 4 of the German VAT Decree) has been adjusted with effect as of 1 January 2022.
Source: dlapiper.com
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