Which goods and services are exempt from value-added tax?
March 6, 2022 | 40,00 EUR | answered by Günther Hering
Dear Mr./Mrs. Tax Advisor,
My name is Leonie Zellerbach and I run a small business that offers various goods and services. Lately, I have noticed that some of my competitors are selling certain products or services without value-added tax. This has made me think and I am wondering if my company may also be exempt from value-added tax for certain goods or services.
I am not sure what rules and regulations apply to value-added tax and whether my company could potentially benefit from it. It would be very helpful to me if you could explain to me which goods and services are generally exempt from value-added tax and under what circumstances my company may be able to benefit from it.
My goal is to financially optimize my business and potentially achieve savings through an exemption from value-added tax. Therefore, I am very interested in learning more about this topic and would appreciate your help in understanding the relevant information for my company on this matter.
Thank you in advance for your support and I look forward to your response.
Sincerely,
Leonie Zellerbach
Dear Mrs. Zellerbach,
Thank you for your inquiry regarding value added tax and whether your company could potentially benefit from an exemption from this tax. I am pleased to assist you and provide you with more information on this topic.
In Germany, all goods and services sold by businesses are generally subject to value added tax. The seller adds the value added tax to the sales price and then remits it to the tax office. However, there are exceptions to this rule, where certain goods and services are exempt from value added tax.
One of the most well-known cases where goods are exempt from value added tax is, for example, with food, books, or newspapers. Certain services, such as medical services, are also exempt from value added tax. However, there are also other exceptions and special regulations that can vary depending on the industry and field of activity.
To determine if your company is exempt from value added tax for certain goods or services, I recommend contacting an experienced tax advisor. A tax advisor can analyze your business activities and assess if there are potential savings through an exemption from value added tax. They can also help you take the necessary steps to apply for a value added tax exemption and ensure that all tax regulations are complied with.
It is important to note that the exemption from value added tax is not automatic and certain requirements must be met to benefit from this tax relief. Therefore, it is advisable to inform yourself early on about the possibilities of a value added tax exemption and, if necessary, seek professional advice.
I hope that this information has been helpful to you and I am available for any further questions. Thank you for your interest and I wish you success for the future of your company.
Best regards,
Günther Hering, Tax Advisor
