Germany MOF Clarifies VAT Exemption for Social Welfare Services

The German Ministry of Finance Dec. 11 posted online BMF Letter No. COO.7005.100.2.13583885, clarifying amendments to the VAT exemption for providing social welfare services. Topics covered include: 1) the VAT exemption for social welfare services, including counseling, food banks, women’s shelters, railway missions, midnight missions, assistance for the homeless, counseling for addicts’ relatives, marital guidance, support for vulnerable individuals, and services provided at below-market prices; 2) expansion of the VAT exemption to cover services related to refugee accommodation; 3) application of the VAT exemption to qualifying sales transactions carried out after Dec. 31, 2019; and 4) clarification that businesses may ...