BMF, guidance of 22 June 2022 – III C 2 – S 7242-a/19/10007 :005
According to § 12 (2) no. 8 (a) sent. 1 UStG, VAT is reduced to 7 per cent for supplies of corporations that exclusively and directly pursue public benefit, charitable or religious purposes (§§ 51 to 68 AO). This does not apply for supplies carried out as part of economic business operations (§ 12 (2) no. 8 (a) sent. 2 UStG). For supplies
carried out as part of a dedicated activity, the reduced VAT rate is subject to special requirements with regard to competition aspects (see § 12 (2) no. 8 (a) sent. 3 UStG).
Source KPMG
Latest Posts in "Germany"
- German Court Rules on Input VAT Adjustment for Repayment by Guarantors in Failed Transactions
- German Court Clarifies Input VAT Adjustment Rules for Repayment by Bank Guarantors
- German Court: Input VAT Deduction Must Be Adjusted After Import VAT Repayment in Insolvency
- Direct VAT Refund Claim by Recipient in Supplier Insolvency Approved by Baden-Württemberg Tax Court
- VAT Exemption for Educational Services Expanded and Redefined in Germany from January 2025
