The non-application period for the new regulation on the status of legal entities under public law as taxable persons is being extended, for the third time, by a further two years. This results in a comfortable transition period of eleven years for the public sector. It is also pleasing that the VAT exemption for educational services will be completely reorganised by the planned Annual Tax Act 2024 and that sport will also be upgraded in terms of VAT exemptions.

The Federal Ministry of Finance has published the draft bill for the Annual Tax Act 2024. Extensive changes, in the area of VAT, are planned. In a short series of newsletters, to be published over the next few days, we will highlight individual topics. In this current newsletter, we first provide a general overview of the planned changes.

Spa communities can breathe a sigh of relief. Input VAT deduction from the purchase and manufacture of spa facilities is (once again) possible under certain conditions. The German Federal Fiscal Court has provided clarity with two decisions published on the same day.