- New regulations regarding the entrepreneurial status of public law legal entities were introduced on January 1, 2017
- A transitional provision allows public law legal entities to continue applying the previous regulations for services rendered before January 1, 2021
- An additional provision extends this transitional period for services rendered between January 1, 2021 and December 31, 2022, unless revoked
- The option to apply the new regulations under § 2b UStG was extended by the Yearly Tax Law 2022
- The document provides guidelines on input tax deduction for public law legal entities and the allocation of input services to the business
- Specific rules for dividing input tax amounts for partially entrepreneurial legal entities are outlined
- Guidelines for central procurement and alternative input tax allocation methods based on budget estimates are provided
- Changes to the VAT application decree are also discussed in the document.
Source: bundesfinanzministerium.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
