The VAT assessment of services provided by German public sector legal entities (jPdöR) fundamentally changed with effect on 1 January 2017. On application, it was possible to postpone the implementation of these changes to 31 December 2020. Since then, the German Coronavirus Tax Assistance Act has provided an extension of this transition period until 31 December 2022. Nevertheless, the conversion to the new legal situation should be prepared with sufficient lead time.
This legislative revision moves away from the previous linking of VAT business activities to businesses of a trade nature being assessed according to corporation tax criteria. As a result, the scope of jPdöR services subject to VAT has usually been significantly expanded.
We will support you in identifying VAT-relevant circumstances in your organisation, to accurately classify these circumstances in accordance with VAT law and to build up an internal control system to ensure the correct settlement of your future VAT obligations.