Section 7: Implementation, regulations regarding fines, penal provisions, transitional regulations and final provisions

§ 26 Implementation, refunds in special cases

(1) For the purposes of maintaining uniformity in the taxation process, eliminating any inequities in cases of hardship or of simplifying the taxation procedures, the Federal Government, with the consent of the Federal Council, may issue a directive specifying more precisely the scope of the VAT exemption, tax reductions and input VAT deductions contained in this Act, as well as shorten the binding periods set out in § 19 paragraph 2 and § 24 paragraph 4. The specification in more detail of the scope of the tax reductions set out in § 12 paragraph 2 number 1, may result in definitions which differ to those set out in the customs tariff.

(2) The Federal Ministry of Finance, with the consent of the Federal Council, may issue a directive that, where references are made to the customs tariff, the wording of each regulation of this Act and the directives issued as a result of this Act should be adjusted in order to match the wording used in the customs tariff in its current applicable version.

(3) Notwithstanding the regulations set out in §§ 163 and 227 of the Fiscal Code, the Federal Ministry of Finance may stipulate that the tax on cross-border passenger transportation by aircraft be assessed lower or be waived either entirely or in part, if the taxable person has not issued invoices on which the VAT is stated separately (§ 14 paragraph 4). In the case of transportation carried out by foreign taxable persons, the stipulation may be made dependent on the fact that VAT, or a similar tax, is not charged in the country in which the foreign taxable person has his seat, on cross-border transportation by aircraft carried out by taxable persons with their seat in the Federal Republic of Germany.

(4) VAT shall be refunded by the Federal Central Tax Office to a consortium founded on the basis of Council Regulation (EC) No. 723/2009 of 25 June 2009 on the Community legal framework for a European Research Infrastructure Consortium (OJ L 206 of 8.8.2009, p. 1) by a resolution of the Commission, if:

1. the consortium has its registered office in Germany pursuant to its articles of association;

2. the legally owed VAT has been invoiced and stated separately;

3. the VAT in question relates to supplies and other services that the consortium has used for its non-commercial activity as set out in its articles of association;

4. the VAT stated on the invoice amounts to more than EUR 25;

5. the VAT has been paid.

Sentence 1 applies accordingly to VAT owed and paid by a consortium according to § 13b paragraph 5, if this amount exceeds EUR 25 per invoice. Sentences 1 and 2 shall also apply accordingly to a consortium with its registered office, pursuant to the articles of association, in another Member State if the requirements for a refund are met in the certificate indicated in section 4 number 7 sentence 5. If the taxable amount is subsequently reduced, then the consortium must inform the Federal Central Tax Office and pay back the excess VAT refunded. If a good is acquired by a consortium for its activity pursuant to its articles of association and where, for this acquisition, a VAT refund was granted, when the good subsequently becomes part of a rendered supply whether for consideration or not, leased or transferred, then the portion of the refunded VAT corresponding to the sales prices or, in the case of a supply without consideration or transfer, the current market value of the good shall be paid to the Federal Central Tax Office. For the sake of simplicity, the VAT to be paid can be calculated by applying the applicable tax rate at the time of supplying or transferring the good.

(5) The Federal Ministry of Finance, with the consent of the Federal Council, may issue a directive specifying more precisely how the proof must be provided with regard to the following VAT exemptions:

1. Article III number 1 of the agreement between the Federal Republic of Germany and the United States of America in respect of the tax benefits to be granted by the Federal Republic for the expenses incurred by the United States in the interests of common defence (BGBI 1955 II p. 823);

2. Article 67 paragraph 3 of the supplementary agreement to the agreement between the members of the North Atlantic Treaty Organisation regarding the legal status of their foreign troops stationed in the Federal Republic of Germany (BGBI 1961 II p. 1183, 1218);

3. Article 14 paragraph 2 lit. b and d of the agreement between the Federal Republic of Germany and the Supreme Headquarters of the Allied Powers, Europe, regarding the establishment and operation of international military headquarters in the Federal Republic of Germany (BGBI 1969 II p. 1997, 2009).

(6) The Federal Ministry of Finance may publish this Act and any directives issued based on it in the Federal Law Gazette in its current applicable version under a new date and with a new title.