Tax Exemption Scope for Aviation: Precedent on VAT, Input Tax Deduction, and Direct Claim

The FG Munich recently had to deal with the scope of the tax exemption provision for aviation in §§ 4 No. 2, 8 para. 2 UStG
Certain sales in aviation may be exempt from VAT under certain conditions
The FG Munich also addressed issues related to input tax deduction and a possible direct claim for incorrectly stated VAT
The ruling is convincing in terms of legal interpretation but may be unfavorable for aviation companies in practice

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.