VAT measures (unofficial translation)
1. Tax-privileged corporations
If tax-privileged corporations within the meaning of Section 5 (1) No. 9 of the Corporation Tax Act (KStG) provide, against payment, personnel, premises, material resources or other services in areas
necessary to cope with the effects and consequences of the war in Ukraine, it will not be of the war in Ukraine, it is not objectionable if these activities are taxed for both activities are classified as special-purpose operations for both income tax and sales tax purposes within the meaning of § 65 AO. S. d. § 65 AO are assigned to the special-purpose business. This applies irrespective of which tax-privileged purpose the respective corporation, which provides personnel, premises, materials or other services, is pursuing in accordance with its articles of association.
2. VAT exemption for the provision of material resources and premises as well as of personnel
The provision of material resources and premises as well as personnel, which are subject to VAT, are exempt from VAT under the further conditions of § 4 number 14, 16, 18, 23 and 25 UStG, are exempt from VAT as closely related transactions, insofar as they take place between taxable and non-taxable parties beneficiary institutions whose sales are exempt under the same provision.
No objections are raised to the fact that sales tax regulations (e.g. sales tax exemption under § 4 numbers 18, 23, 24 or 25 UStG or sales tax reduction under § 12 para. pursuant to Section 12 (2) No. 8 UStG), which already apply to comparable services provided by the respective institution to other recipients of services (e.g. homeless persons), are also applied to services provided by this institution that serve to care for and provide services to war refugees if payments for these services are financed from public coffers or from other tax-privileged corporations.
3. Provision of objects or personnel free of charge
In the case of the gratuitous provision of objects and personnel for humanitarian purposes by companies to institutions that perform an indispensable mission for the and consequences of the war in Ukraine, such as aid organizations, facilities for refugees and for the care of the wounded, as well as other public institutions, the taxation of a free transfer of value is waived. If an entrepreneur already intends to use the services exclusively and directly for the aforementioned purposes when purchasing the services, the corresponding input tax amounts are to be taxed under the other conditions of Section 15 of the German VAT Act (UStG) in the 15.15 paragraph 1 UStAE, the corresponding input tax amounts are to be taken into account. The following transfer of value free of charge is not taxed in accordance with the previous paragraph.
taxed in accordance with the previous paragraph.
4. input tax deduction in case of change of use
In the case of changes in the use of premises of public companies, input tax taxation is waived in accordance with Section 163 of the German Fiscal Code (AO) for reasons of 3 (9a) of the German VAT Act (UStG) and an input tax adjustment pursuant to Section 15a of the German VAT Act (UStG), if and to the extent that the circumstances give rise to the gratuitous use of the premises in order to cope with the effects and consequences of the war in the Ukraine. This provision also applies to input taxes from current costs. The equity rule shall be applied mutatis mutandis to public-sector enterprises operated in private legal form.
5. Gratuitous transfer of residential premises
The taxation of a transfer of value free of charge and an input tax correction 15a UStG is also waived if private companies provide accommodation that was intended for use subject to VAT (hotel rooms, vacation homes, etc.). taxable use (hotel rooms, vacation apartments, etc.) are made available free of charge to persons who are who have fled the war in Ukraine. If these If these entrepreneurs already intend to provide such accommodation free of charge when purchasing ancillary services (electricity, water, etc.), a corresponding input tax is also deducted by way of exception under the above-mentioned conditions and the further requirements of § 15 UStG.
In addition, a corresponding input tax deduction will be granted on an equitable basis under the above-mentioned conditions and other requirements of § 15 UStG. The following free transfer of value shall not be taxed on an equitable basis in accordance with the preceding paragraph.
Source BMF
