BMF, guidance of 22 June 2022 – III C 2 – S 7242-a/19/10007 :005
According to § 12 (2) no. 8 (a) sent. 1 UStG, VAT is reduced to 7 per cent for supplies of corporations that exclusively and directly pursue public benefit, charitable or religious purposes (§§ 51 to 68 AO). This does not apply for supplies carried out as part of economic business operations (§ 12 (2) no. 8 (a) sent. 2 UStG). For supplies
carried out as part of a dedicated activity, the reduced VAT rate is subject to special requirements with regard to competition aspects (see § 12 (2) no. 8 (a) sent. 3 UStG).
Source KPMG
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