By means of sec 2b of the German VAT Act, the legislator has reformed the VAT taxation of public bodies. The amendment is accompanied by a transitional regulation in sec 27 para 22 of the German VAT Act. Sec 2b of the German VAT Act is applicable to supplies as of 01.01.2017. By making a declaration to the tax office, the application of the new regulation can be waived in favor of continuing with the existing legal situation. The Federal Ministry of Finance has now issued an opinion on sec 27 para 22 of the German VAT Act. Public bodies need to check, in due time, whether the new implementation arrangements application rule would be advantageous.
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