Reduced Tax Rate and Fare Separation for Passenger Transport Companies: Actual vs. Maximum Travel Distance

• Reduced tax rate applies to passenger transport in approved local public transport within a municipality or if the transport distance does not exceed 50 kilometers.
• The court assessed whether the transport distance for tickets within a transport association is determined by the actual distance traveled by the passenger or the longest possible distance with the ticket.
• The decision impacts the regulation that considers the longest possible distance for district, network, and strip tickets.
• The determination of the transport distance should follow general VAT principles, focusing on the actual distance traveled by the passenger.
• The potential maximum distance a passenger could travel with a ticket is irrelevant.

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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