The VAT liability of public-law entities under section 13c of the German VAT Act
VAT | Public sectorIn section 13c of the VAT Act [Umsatzsteuergesetz–UStG], VAT law sets out liability when claims are assigned, pledged or seized. When the assignment or pledge is made to a non-taxpayer or seized by a non-taxpayer, the administrative authorities expressly considered until now that there was no liability under section 13c. Non-taxpayers include bodies governed by public law if they do not carry on any economic operations as defined by section 2(3). But by applying section 2b, changes occur that affect bodies governed by public law. The Federal Ministry of Finance (BMF) has now commented on these changes in a new Circular.
|
4 min read
|
18 May 2026
