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ARTICLE · 04 DECEMBER 2020

Draft Fund Jurisdiction Act – VAT Exemption For VC Funds Gets Closer

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In the last year of the current Grand Coalition, the German Federal Ministry of Finance has made a remarkable proposal: an Act to Strengthen Germany as a Fund Jurisdiction.

GermanyFinance and Banking
Dr. Philip Schwarz Van Berk, LL.M.
Dr. Philip Schwarz Van Berk, LL.M.
Dr. Peter Bujotzek
Dr. Peter Bujotzek
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In the last year of the current Grand Coalition, the German Federal Ministry of Finance has made a remarkable proposal: an Act to Strengthen Germany as a Fund Jurisdiction. For over two decades, fund sponsors, industry groups and advisers have stressed the importance of a fund-friendly tax and legal regime in Germany, in particular to retain and strengthen Germany's venture capital financing. We have taken a first look for you at the proposed new provisions.

Executive Summary

The Fund Jurisdiction Act affects multiple important areas of law, including

  • VAT-exempt management fee for venture capital funds
  • Electronic communications for proceedings with the German regulator (BaFin)

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