Abstract
The public sector in Germany is subject to both income tax and value-added tax when its activities go beyond the area of public administration to the extent that they enter into competition with other providers. The taxation of public-sector entities is intended primarily to prevent the distortion of competition. The delimitation of the spheres that are relevant for taxation purposes requires a complex system of statutory provisions. The German Tax Amendment Act 2015 seeks to establish a new statutory basis for the VAT treatment of the public sector that is compliant with EU law. Keywords: taxation, public sector, Germany
Highlights
This paper reproduces the content of the author's presentation to "Current research problems in administrative studies in Poland and Germany" conference held at the University of Wrocław on 21-22 October 2016
This means that asset management activities and assistance services will remain taxexempt until 31 December 2020 at the latest. The exercise of this option is intended to allow legal entities of public law (l.e.p.l.) to extend the one-year transitional period provided by para 27 sec 22 sentence 1 Value Added Tax Act (UStG) for up to a further four years in order to enable an orderly transition to the new taxation system
As there is currently considerable uncertainty with regard to the consequences of applying the new standard from 2017, not least as a result of the large number of indeterminate legal concepts contained in para 2b Value Added Tax Act (UStG), many legal entities of public law (l.e.p.l.) are expected to initially exercise the option in order to give themselves more time to intensively examine the individual steps that will be required to adapt to the new legal situation[75]
Summary
This paper reproduces the content of the author's presentation to "Current research problems in administrative studies in Poland and Germany" conference held at the University of Wrocław on 21-22 October 2016 It illustrates the fundamental methods and problems concerning taxation of the public sector in Germany based on the examples of corporation tax and value-added tax. The concept is understood to include legal entities governed by public law (“legal entities of public law” or “l.e.p.l.”, in German: "juristische Personen des öffentlichen Rechts" or "jPöR" for short). The fundamental tasks of a legal entity of public law (l.e.p.l.) lie in the exercise of public authority for the performance of sovereign functions
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