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14 March 2018
In Germany, a carrier (operating or contractual) is, in general, value added tax (VAT) liable along the domestic part of the flight route. The German domestic part of the flight route of an international passenger transport service may include flights from:
However, it is possible for the carrier to apply for VAT remission according to Section 26(3) of the VAT Act. If the carrier is a German entity, the remission applies without further requirements other than an invoice without VAT. In contrast, if the carrier is a foreign entity, the tax relief must be mutual (ie, the state of the registered office of the foreign carrier must grant tax relief to German carriers as well). The Ministry of Finance has issued a list of the respective states.
On February 7 2018 the tax authorities issued a statement with some specifications regarding Section 26(3) of the VAT Act in order to harmonise the handling of the provision throughout Germany:
For further information on this topic please contact Johannes Stehr at Arnecke Sibeth Rechtsanwaelte by telephone (+49 69 97 98 85 0) or email (firstname.lastname@example.org). The Arnecke Sibeth website can be accessed at www.arneckesibeth.com.
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