VAT liability yes or no? With a supplement to the German VAT
Regulations, the Federal Ministry of Finance presents the eagerly
awaited definition of which funds fall under the VAT exemption
under the so-called Act to Strengthen Germany as a Fund
Jurisdiction.
Supplement to the German VAT Regulations
The so-called Act to Strengthen Germany as a Fund Jurisdiction
added an exemption to the German VAT Act from VAT for management
services rendered to "venture capital funds"
(Wagniskapitalfonds) with effect from 1 July 2021. To date,
however, it has been largely unclear how the tax authorities
interpret the term "venture capital fund"
(Wagniskapitalfonds), which is not defined by law, and what type of
funds are to be covered by this new VAT exemption.
