The German Federal Ministry of Finance issued a letter on March 13, 2025, to clarify the application of value-added tax (VAT) exemptions for travel services. The letter specifically addresses the interpretation of Section 25.1, paragraph 12 of the VAT Application Decree (UStAE). It emphasizes that when a single travel service qualifies for both a general VAT exemption and a specific travel service exemption, the general exemption takes precedence. This clarification aims to provide legal certainty for businesses offering travel services.
Source: bundesfinanzministerium.de
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.
Latest Posts in "Germany"
- New General Court VAT case – T-569/25 (X-GmbH) – Details not yet known
- Germany’s B2B E-Invoicing Mandate: Phased Rollout to Combat VAT Fraud and Modernize Tax System
- Germany Tightens Tax Rules for Influencers & Content Creators
- New draft bill to amend the Energy and Electricity Tax Act – Part 2
- Federal Fiscal Court Rules on VAT Allocation for Discounted Restaurant Menus
