- The 2022 Annual Tax Act amended § 2 Abs. 1 Satz 1 Halbsatz 2 UStG, effective January 1, 2023, allowing entities to be considered entrepreneurs for VAT purposes regardless of their legal capacity.
- As a result, non-legal entities such as fractional ownership communities (Bruchteilsgemeinschaften) can now be recognized as entrepreneurs under VAT law.
- The Federal Ministry of Finance (BMF) has issued comprehensive guidance on this change.
- This amendment overturns previous case law, which held that Bruchteilsgemeinschaften could not be entrepreneurs, and clarifies that the relevant legal relationships exist with the individual members, not the community itself.
Source: datenbank.nwb.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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