Mehrwertsteuerbefreiungen

Mehrwertsteuerbefreiungen, also known as VAT exemptions, refer to specific goods and services that are not subject to Value Added Tax (VAT). These exemptions are implemented by governments to achieve various policy objectives, such as making essential goods more affordable, promoting certain sectors, or aligning with international agreements.

The categories of goods and services that qualify for VAT exemption vary significantly by country. However, common examples often include medical services, educational services, certain financial transactions, insurance, and the leasing or letting of immovable property. In many jurisdictions, the provision of services by public bodies or non-profit organizations for the public good may also be exempt.

The purpose of VAT exemption is to reduce the tax burden on specific economic activities or consumer groups deemed socially or economically important. For businesses, VAT exemption can simplify accounting processes as they do not need to charge VAT on their exempt supplies, nor can they reclaim VAT paid on their business expenses related to those supplies. This inability to reclaim input VAT is a key distinction from zero-rated supplies, where VAT is charged at 0%, but input VAT can still be recovered.

Understanding which goods and services are VAT exempt is crucial for both businesses and consumers. Businesses must correctly identify their taxable and exempt supplies to ensure compliance with tax regulations. Consumers benefit from lower prices on exempt goods and services. The specific rules and definitions for VAT exemptions are detailed in national VAT legislation.