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.
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