The sixth part of our newsletter series on the Annual Tax Act 2020 deals with the changes regarding the healthcare, nursing care and social services sector. The legislator is further aligning the German VAT law in this sector to European law. The draft of the Annual Tax Act 2020 provides for a number of selective extensions of the corresponding VAT exemptions. In particular, the assessment of the 25 % threshold, provided for in the residual provision of sec. 4 no. 16 German VAT Act, is to be adjusted. Furthermore, the legislator wants to clarify, that short-term room rentals by student unions to students are VAT-exempt.