Sales tax exemption; examination of the conditions

Sales tax exemptions do not have to be applied for; they apply insofar as the respective legal requirements are met. This ensures that services for important areas of everyday life, such as rent and medical treatment, are not made more expensive.

Description

In order not to increase the price of services for important areas of everyday life, such as rent and medical treatment, tax exemptions apply.
For example, the following are exempt from sales tax:

  • Renting of apartments,
  • insurance services,
  • cultural services,
  • educational services,
  • medical treatment services,
  • care and nursing services,
  • child and youth care services.

Based on the information provided by the taxpayer, the tax office checks whether the respective legal requirements for VAT exemption are met. These include, on the one hand, personal requirements, for example, that treatment services are provided by a doctor or a member of a medical profession. On the other hand, there may be factual requirements, for example, that services provided to children and young people are services in accordance with Book Eight of the Social Code (SGB VIII).
A certificate must be submitted to the tax office to prove that the other requirements for VAT exemption for cultural or educational services are met.

Prerequisites

The requirements for individual tax exemptions vary widely and are regulated individually in the Value Added Tax Act. To claim tax exemption for cultural and educational services, certificates are sometimes required. These are issued by the competent authorities in the respective federal states.

In case of doubt, please contact the tax office responsible for you.

Procedure

The tax return is submitted to the relevant tax office.

  • The tax office checks whether the conditions for VAT exemption are met.
  • You will find out the result of this examination from the tax assessment.

Deadlines

The general tax return deadlines apply.

Processing time

  • usually up to 2 months

Required documents

  • Required Documents

    The documents or evidence that may be required for the application of the respective VAT exemption are derived from the respective exemption standard. For example, a care facility must submit a care contract for the VAT exemption of care services.

Fees

  • There are no costs for you.

    The exception to this are any certificates required for cultural and educational services. Fees may be charged for these certificates by the competent authorities of the countries.

Remedy

  • Appeal against the tax assessment
    Detailed information on how and within what period you can appeal can be found in the appeal instructions attached to the tax assessment.
  • Tax court action

Status: 19.08.2022

Responsible for editing: Bundesministerium der Finanzen

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  • Online transactions, Bavaria-wide
  • Online transactions, locally limited
  • Prefillable Form, Bavaria-wide
  • Legal bases, Bavaria-wide
  • Legal bases, locally limited
  • Fees, Bavaria-wide
  • Fees, locally limited
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