Germany MOF Issues Guidance on VAT for Cross-Border Bus Transport

The German Ministry of Finance Mar. 5 posted online Letter No. 2024/0053891, issuing guidance on the VAT taxation of cross-border passenger transport with buses and coaches not registered in Germany. The guidance clarifies that: 1) effective July 1, 2021, non-EU and other EU companies providing such services to non-entrepreneurs can use the special one-stop shop (OSS) taxation procedures under Secs. 18i or 18j of the German VAT Act, as an alternative to individual transport taxation; 2) under the individual transport taxation procedure, input VAT cannot be deducted but can be refunded; 3) under the OSS procedures, input VAT also cannot ...