2 Limitation by the Federal Ministry of Finance
In principle, zero-rating is also applicable to supplies carried out at earlier stages of the commercial chain. This, however, requires that the vehicle is already concretely and unambiguously identifiable. Further, the final purpose of the supply must already be known. Therefore, the supplier must have available both accounting and documentary evidence. Subsequent traceability, by means of specific control and monitoring schemes, does not meet the requirements. These tax benefits apply to supplies, which are destined for existing watercrafts. According to the Federal Ministry of Finance’s new letter, a watercraft is deemed to be existing, earliest, at the time of its launch or floatation in a dry dock. These regulations also apply accordingly to aircrafts. The letter does, however, not include a definition as regards when an aircraft is deemed to be existing.
Dr. Christian Salder
Lawyer, Certified tax consultant
Phone: +49 89 217501285
christian.salder@kmlz.de
As per: 14.09.2018