Germany Clarifies VAT Exemption Amendments for Social Welfare and Refugee Services Effective After 2019

• The German Ministry of Finance clarified amendments to the VAT exemption for social welfare services.
• The exemption covers services such as counseling, food banks, women’s shelters, railway and midnight missions, assistance for the homeless, support for addicts’ relatives, marital guidance, and services for vulnerable individuals, including those provided below market prices.
• The VAT exemption is expanded to include services related to refugee accommodation.
• The exemption applies to qualifying sales transactions after December 31, 2019.
• Businesses may treat sales before January 1, 2026, as subject to VAT, even if this does not align with the amended rules.

Source: news.bloombergtax.com

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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