1. exports (§ 6) and the outward processing of export goods (section 7),

2. intra-Community supplies (§ 6a); this shall not apply where the taxable person has not complied with his obligation to submit a recapitulative statement (§ 18a) or where he has, with respect to the supply, submitted the recapitulative statement incorrectly or incompletely ;

transactions relating to maritime traffic and aviation (§ 8);

the following supply of services:

1. the cross-border transport of goods, transport using the international railway freight traffic system and other supplies of services, if the supply

   aa)

   directly relates to goods for export or to imported goods that are transported to a third country territory under the external dispatch procedures, or

   bb)

   relates to goods imported into the territory of a Member State of the European Union and the cost for the supplies are included in the tax base for this importation. The transport of goods referred to in § 1 paragraph 3 number 4 lit. a from a free zone into Germany shall not be VAT exempt;

2. the transport of goods to and from the islands that constitute the regions of the Azores and Madeira;

3. supply of services directly relating to imported goods, the temporary use of which in the territories referred to in § 1 paragraph 1 number 4 has been approved by the customs authorities, where the customer is a foreign purchaser (§ 7 paragraph 2). This shall not apply to supplies of services that relate to means of transport, pallets and containers.

The regulation shall not apply to the transactions referred to in numbers 8, 10 and 11 and to the processing and treatment of goods, including work performed within the meaning of § 3 paragraph 10. The supplier must prove that the requirements for the VAT exemption have been met. The Federal Ministry of Finance, with the consent of the Federal Council, may issue a directive as to how the taxable person must provide the proof;

the supply of gold to central banks;

the following transactions:

1. the supply of the goods set out in Annex 1 to a taxable person for the purpose of his business, if the goods supplied are stored in a VAT warehouse in connection with the supply or are located in a VAT warehouse. Upon removal of goods from a VAT warehouse, the VAT exemption shall cease to apply to the supply made prior to the removal, to the intra-Community acquisition made prior to the removal or to the import made prior to the removal; this shall not apply if the goods removed are stored in another VAT warehouse within Germany. Removal from storage constitutes the final removal of goods from a VAT warehouse. The elimination of the requirements for the VAT exemption, as well as the rendering of a supply not granted under lit. b with regard to the warehoused goods, shall be regarded as final removal;

2. a supply directly relating to the warehousing, maintenance, improvement in the condition and commercial quality or to the preparation of the stored goods for operational use or for resale. This shall not apply if the goods are treated through the services provided in such a way that they are suitable to be supplied at retail level.

The VAT exemption shall not apply to supplies provided to taxable persons who use these supplies to execute transactions for which the tax is determined in accordance with the average rates set out in section 24. The preconditions of the VAT exemption must be proved by the taxable person in a clear and easily verifiable manner. A VAT warehouse may be any property or portion thereof in Germany used for the warehousing of goods referred to in Annex 1 and is operated by a warehouse keeper. This may include several storage locations. The VAT warehouse requires the approval of the tax authority responsible for the warehouse keeper. The application for approval must be submitted in writing. Approval shall be given if there is an economic need for the operating of the VAT warehouse and the warehouse keeper provides assurances that it will be managed in a proper manner;

the supply of goods made prior to importation, if the purchaser or his appointed representative imports the goods. This shall apply accordingly to supplies made prior to the supplies referred to in sentence 1. The requirements for the VAT exemption must be proved by the taxable person in a clear and easily verifiable manner;

the supply of goods to a taxable person for the purpose of his business which he will supply in accordance with § 3 paragraph 3a sentence 1 in the Community territory;

procurement of

1. transactions mentioned in number 1 lit. a, number 2 to 4b and numbers 6 and 7,

2. cross-border passenger transport by aircraft or by seagoing vessels;

3. transactions executed exclusively in a third country territory;

4. supplies that shall be treated in accordance with § 3 paragraph 8 as having been executed in Germany.

Procurement services provided by travel agencies to travellers are not VAT exempt. The taxable person must prove that the requirements for the exemption are met. The Federal Ministry of Finance, with the consent of the Federal Council, may issue a directive as to how a taxable person must provide such proof;

1. supply of goods and services of the German Federal Railways carried out for railway administrations, the registered offices of which are located abroad, at stations located in the Community, at interchange stations, on border traffic lines and transit routes;

2. (deleted)

3. supplies of imported goods to purchasers resident in a third country territory, with the exception of the territories mentioned in § 1 paragraph 3, provided that the temporary use of the goods in the territories referred to in § 1 paragraph 1 number 4 has been approved by the customs authorities and this approval continues to apply after the supply is made. The supplies of means of transport, pallets and containers are not exempt.

4. passenger transport services by passenger and ferry services using vessels for maritime traffic, where passengers are transported between domestic seaports and the island of Helgoland;

5. the supply of food and beverages for consumption on board vessels used in maritime traffic between a German and a foreign seaport and between two foreign seaports. Within the meaning of sentence 1, German seaports shall also include free ports and ports on the island of Helgoland;

supply of goods, except for supplies of new vehicles within the meaning of § 1b paragraph 2 and paragraph 3, and supply of services provided to

1. other members of the North Atlantic Treaty Organisation, that are not included within the scope of the VAT exemption in § 26 paragraph 5, where the transactions are intended for the use or consumption by the armed forces of these members, by the civilian staff accompanying them or for supplying their messes or canteens and the armed forces when taking part in the common defence effort;

2. armed forces of members of the North Atlantic Treaty Organisation stationed in the territory of another Member State, in the case where they are not rendered to the armed forces of this Member State;

3. permanent diplomatic missions and consular representations, as well as their staff located in the territory of another Member State,

4. intergovernmental institutions, as well as their staff located in the territory of another Member State,

5. armed forces of another Member State, when the transactions are intended for the use or consumption by the armed forces, the civilian staff accompanying them or for supplying their messes or canteens and the armed forces are taking part in a defence effort carried out for the implementation of a Union activity under the common security and defence policy, and

6. armed forces of another Member State stationed in the territory of another Member State, when the supplies are intended for the armed forces of any Member State, other than the Member State of destination itself, for the use or consumption by the armed forces, the civilian staff accompanying them or for supplying their messes or canteens and the armed forces are taking part in a defence effort carried out for the implementation of a Union activity under the common security and defence policy.

The goods supplied must be transported or dispatched to the territory of the other Member State in the cases referred to in sentence 1 lit. b to d and f. With regard to the VAT exemption according to sentence 1 lit. b to d and f, the requirements applicable in the other Member State must be fulfilled. The taxable person must demonstrate that the conditions for the VAT exemption are met. In the case of the VAT exemption according to sentence 1 lit. b to d and f, the taxable person must demonstrate that the requirements applicable in the other Member State have been met by obtaining from the purchaser a certificate issued by the competent authorities of the other Member State or, if he is so authorised, issued by himself in accordance with the official pre-printed form. The Federal Ministry of Finance, with the consent of the Federal Council, may issue a directive as to how the taxable person must demonstrate that any other preconditions have been met;

1. the granting and negotiating of credit;

2. transactions, including negotiation, concerning legal means of payment. This shall not apply if the currency is used because of its metal content or its collectors’ value;

3. transactions concerning debts, cheques and other negotiable instruments, as well as the negotiation of such transactions, but excluding debt collection;

4. transactions, including negotiation, concerning deposits, current accounts, payments and bank transfers and the collection of negotiable instruments;

5. transactions, including negotiation, concerning shares, but excluding the safekeeping and management of shares;

6. transactions, including negotiation, in interests in companies and other associations;

7. the assumption, including negotiation, of liabilities, guarantees and other security for money;

8. the management of undertakings for collective investment in transferable securities within the meaning of § 1 paragraph 2 of the German Capital Investment Code, the management of equivalent alternative investment funds within the meaning of § 1 paragraph 3 of the German Capital Investment Code, the management of venture-capital funds and the management of pension funds within the meaning of the Insurance Supervision Act;

9. transactions with stamps which are officially valid in Germany at face value;

10. j) and k) (deleted)

1. transactions that fall within the scope of the Real Estate Transfer Tax Act,

2. transactions that fall within the scope of the Races Betting and Lottery Act. The VAT exemption does not apply with regard to transactions falling within the scope of the Races Betting and Lottery Act, which are exempt from race betting tax and lottery tax or on which this tax is not generally levied;

1. supplies provided on the basis of an insurance agreement within the meaning of the Insurance Tax Act. This shall also apply if the payment of the insurance consideration is not subject to insurance tax;

2. supplies under which insurance coverage is obtained for other persons;

transactions arising from activities carried out by building society representatives, insurance agents and insurance brokers;

the following transactions carried out by Deutsche Bundespost, TELEKOM and Deutsche Telekom AG in the period from 1 January 1993 to 31 December 1995:

1. the assignment of telephone and integrated-services digital network connections, as well as the provision of connections within these networks emanating there from and to mobile telephone systems;

2. the assignments of transmission routes in the network monopoly of the Federal Government;

3. the broadcasting and transmission of radio signals, including the assignment of the transmitters and other equipment required for this purpose, as well as the receiving and distribution of radio signals in broadband distribution networks, including the assignment of cable connections;

Universal services according to Article 3 paragraph 4 of Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service (OJ L 15 of 21 January 1998, page 14, L 23 of 30 January 1998, page 39), which was amended by Directive 2008/6/EC (OJ L 52 of 27 February 2008 page 3), in the current applicable version. A precondition for the VAT exemption is that the taxable person is, according to a certificate issued by the Federal Central Tax Office, obliged with regard to the said authority to offer the entirety of the universal services or a part thereof, according to sentence 1, nationwide in the entire territory of the Federal Republic of Germany or in a partial area. The VAT exemption shall not apply to supplies, which the taxable person provides due to

1. individually negotiated agreements, or

2. general terms and conditions at different quality conditions or at lower prices than the rates generally available to anyone or than the considerations approved according to § 19 of the Postal Act of 22 December 1997 (BGBl I page 3294), which was amended by Article 272 of the Directive of 31 October 2006 (BGBl page 2407), each in the applicable version;

1. the leasing or letting of immovable property, of entitlements, to which the regulations in the German Civil Code relating to immovable properties apply, and of national sovereign rights relating to the use of property;

2. the assignment of property and parts thereof for use based on an agreement or letter of understanding concerning the transfer of ownership;

3. provision, assignment and transfer of the exercise of usage rights in rem over immovable property.

The leasing of living space and bedrooms that a taxable person keeps available for the short-term lodging of third parties, the leasing of parking spaces for cars, the short-term leasing of campsites and the leasing and letting of machines and other equipment of any type that belong to a plant (operating equipment), even if they are significant components of real estate, are not exempt;

supplies rendered by the associations of condominium owners, within the meaning of the Condominium Act as published in the Federal Law Gazette Part III, classification number 403-1 in the current applicable version, to condominium owners or part owners, provided that the supplies comprise the transfer of joint ownership for use, maintenance, repairs and other management services, as well as the supply of heat and similar goods;

1. treatment in the area of human medicine provided as part of the activities carried out by a doctor, dentist, an alternative practitioner, a physiotherapist, midwife or within the scope of a similar health providing activity. Sentence 1 shall not apply to the supply or rebuilding of dental prosthesis (sub-positions 9021 21 and 9021 29 00 of the customs tariff) and orthodontic appliances (sub-positions 9021 10 of the customs tariff), if the taxable person has manufactured or rebuilt them in his business;

2. hospital treatment and medical treatment, including diagnosis, assessment of the findings, preventative check-ups, rehabilitation, midwifery services, as well as closely related services provided by institutions under public law. The supplies referred to in sentence 1 are also VAT exempt if they are provided by

   aa)

   authorized hospitals according to § 108 of the Fifth Book of the Social Security Code or other hospitals, which provide their services from a social perspective under comparable conditions, which are part of organisations governed by public law or are approved according to § 108 of the Fifth Book of the Social Security Code; comparable conditions from a social perspective are assumed if the services offered by the hospital corresponds with the services provided by hospitals of public bodies or of hospitals approved according to § 108 of the Fifth Book of the Social Security Code and the estimated costs accrue at a minimum of 40 percent of the annual occupation and calculation days with regard to patients from whom, for the hospital services, a consideration is charged which is not higher than the consideration calculated for the hospital services according to the Hospital Consideration Act or the Federal Hospital Charge Directive or the persons mentioned in § 4 number 15 lit. b benefit from presumably 40 percent of the services, whereby generally, the conditions of the previous calendar year must be taken into consideration.

   bb)

   centres for medical treatment and diagnosis or for the assessment of findings, which participate in the contractually agreed medical care system according to § 95 of the Fifth Book of the Social Security Code or to which the regulations according to § 115 of the Fifth Book of the Social Security Code apply;

   cc)

   institutions which have been involved in the provision of medical care by the provider of the statutory accident insurance according to § 34 the Seventh Book of the Social Security Code;

   dd)

   institutions with which medical care agreements have been entered into according to § 111 and § 111a of the Fifth Book of the Social Security Code;

   ee)

   rehabilitation institutions with which agreements have been entered into according to § 38 of the Ninth Book of the Social Security Code;

   ff)

   institutions providing midwifery services to which agreements apply according to § 134a of the Fifth Book of the Social Security Code;

   gg)

   hospices with which agreements have been entered into according to § 39a paragraph 1 of the Fifth Book of the Social Security Code; or

   hh)

   institutions with which agreements have been entered into according to § 127 in conjunction with § 126 paragraph 3 of the Fifth Book of the Social Security Code regarding the provision of non-clinical dialysis services

   and if they constitute the type of services to which authorisation, agreement or control according to the Social Security Code relate in each case, or

   ii)

   are supplied by institutions according to § 138 paragraph 1 sentence 1 of the penal law;

3. supplies as defined in lit. a and b that are supplied by institutions with whom agreements have been entered into regarding GP-centred medical care according to § 73b of the Fifth Book of the Social Security Code or regarding special medical care according to § 140a of the Fifth Book of the Social Security Code, as well as services to ensure outpatient medical care in stationary care facilities, which are provided by institutions with whom agreements according to § 119 of the Fifth Book of the Social Security Code have been concluded;

4. (deleted)

5. supplies provided by a doctor or hygiene officers at the institutions mentioned in lit. a, and b to prevent hospital-acquired infections and the spreading of pathogenic germs, in particular those with resistance, where the purposes of such services is to provide their treatment properly in compliance with the obligations set out in the law on preventing infection and the legal regulations of the Federal Lands according to § 23 paragraph 8 of said law;

6. the supplies closely linked to the advancement of the public health care, which are carried out by

   aa)

   corporate bodies under public law,

   bb)

   medical and rescue services which fulfil the provisions of the federal states law

   cc)

   institutions, which ensure the execution of emergency medical services, according to § 75 of the Fifth Book of the Social Security Code;

transactions carried out by the statutory providers of social security, by the statutory providers of basic social care for job seekers according to the Second Book of the Social Security Code, as well as by common institutions according to § 44b paragraph 1 of the Second Book of the Social Security Code, by local and regional providers of social welfare benefits, as well as by administrative authorities and other authorities responsible for making provision for war victims including the providers of welfare to war victims

1. provided vis-á-vis each other;

2. for the insured persons, the recipients of the benefits according to the Second Book of the Social Security Code, the recipients of social welfare benefits or the persons entitled to care;

the provision of services by medical service providers (§ 278 of the Fifth Book of the Social Security Code) and the provision of federal medical services (§ 281 of the Fifth Book of the Social Security Code) amongst each other and for the statutory providers of social security and their associations and for the institutions of the basic provision for jobseekers according to the Second Book of the Social Code, as well as the common institutions according to § 44b of the Second Book of the Social Code;

Rehabilitation services, in accordance with the Second Book of the Social Code, services for the active promotion of employment in accordance with the Third Book of the Social Code and comparable services provided by institutions under public law or other institutions with a social character. Other institutions with a social character within the meaning of this regulation are institutions which

1. are approved in accordance with section 178 of the Third Book of the Social Code;

2. have concluded agreements for their services, within the meaning of sentence 1, with the statutory providers of the basic provision for jobseekers in accordance with the Second Book of the Social Code; or

3. have concluded agreements for services comparable with those within the meaning of sentence 1, with bodies governed by public law which perform these services with the intention of integration within the employment market;

services enabling participation in working life in accordance with § 49 of the Ninth Book of the Social Security Code, that are provided by institutions under public law or other institutions with a social character. Other institutions with a social character within the meaning of this regulation are rehabilitation services and facilities, in accordance with §§ 36 and 51 of the Ninth Book of the Social Security Code, with which agreements are in place in accordance with § 38 of the Ninth Book of the Social Security Code;

services closely related to assisting or caring for persons in need of physical, cognitive or psychological assistance that are provided by

1. bodies governed by public law;

2. institutions with which there is an agreement in place in accordance with § 132 of the Fifth Book of the Social Security Code;

3. institutions with which there is an agreement in place in accordance with § 132a of the Fifth Book of the Social Security Code, § 72 or § 77 of the Eleventh Book of the Social Security Code or which provide home nursing or care services and are established for this purpose in accordance with § 26 paragraph 5 in conjunction with § 44 of the Seventh Book of the Social Security Code;

4. institutions that provide services relating to home nursing care or domestic help and are established for this purpose in accordance with § 26 paragraph 5 in conjunction with §§ 32 and 42 of the Seventh Book of the Social Security Code;

5. institutions with which there is an agreement in place in accordance with § 194 of the Ninth Book of the Social Security Code;

6. institutions approved in accordance with § 225 of the Ninth Book of the Social Security Code;

7. institutions, to the extent that they provide services that are recognised under State law as offers of everyday support according to § 45a of the Eleventh Book of the Social Security Code;

8. institutions, with which there is an agreement in place in accordance with § 123 of the Ninth Book of the Social Security Code, or in accordance with § 76 of the Twelfth Book of the Social Security Code;

9. institutions, with which an agreement is in place in accordance with § 8 paragraph 3 of the law establishing social insurance for the agriculture, forestry and horticulture sectors, concerning the granting of home nursing care or domestic help in accordance with §§ 10 and 11 of the second law governing health insurance for farmers, § 10 of the law governing pension schemes for farmers or according to § 54 paragraph 2 of the Seventh Book of the Social Security Code;

10. institutions that are approved on the basis of a State guideline, in accordance with § 2 of Early Intervention Ordinance, as suitable specialised and interdisciplinary early intervention entities;

11. institutions that have been nominated as care providers according to § 1814 paragraph 1 of the Civil Code, provided that the services in question are not reimbursed pursuant to § 1877 paragraph 3 of the Civil Code;

12. institutions, with which an agreement is in place regarding care advice in accordance with § 7a of the Eleventh Book of the Social Security Code, or

13. institutions that are reimbursed fully or partially for assistance and care costs or for costs closely related to the provision of assistance and care in at least 25 percent of cases by the statutory social security or social welfare benefits provider and by the care administration responsible for providing care to war victims, including the provider of welfare to war victims.

Services within the meaning of sentence 1, provided by institutions in accordance with lit. b to m are exempt, provided that the services are of such a nature, that the approval, contract or the agreement under social legislation or the reimbursement relate in each case to;

1. the supply of human organs, human blood and human milk;

2. the transport services for sick or injured persons in vehicles specially designed for this purpose;

services closely linked to social welfare and social security, provided that these services are provided by public body institutions or other institutions which do not pursue systematic realisation of profits. In cases where profits are nevertheless generated, they should not be distributed, but must be used for maintenance or improvement of the services provided by the institution. With regard to services mentioned in other numbers in § 4, the VAT exemption is only applicable based on the conditioned mentioned therein;

services between independent organisations of a political party, to the extent that these services are rendered as part of their statutory tasks in return for reimbursement of expenses, and to the extent that the party in question has not been excluded from partial state financing in accordance with § 18 paragraph 7 of the German Parties Act;

1. transactions carried out by blind persons, if their businesses have no more than two employees. The person’s spouse, registered partner, his or her underage children, the parents of the blind person and trainees do not qualify as staff. Proof of blindness is to be provided in accordance with the decisive regulations applicable to the taxation of income. Exemption from taxation shall not apply to the supply of energy products, within the meaning of § 1 paragraph 2 and paragraph 3 of the Energy Tax Act, and alcohol products within the meaning of the Alcohol Excise Tax Act, if the blind person is required to pay energy tax or alcohol tax for these products, and to supplies within the meaning of number 4 sentence 1 lit. a sentence 2;

2. the following transactions executed by owners of approved factories operated by blind persons and of approved mergers of blind factories within the meaning of § 226 of the Ninth Book of the Social Security Code:

   aa)

   the supply of goods and accessories for the blind;

   bb)

   services if only blind persons are involved in the rendering of such services;

1. transactions executed by the following institutions of bodies governed by public law: theatres, orchestras, chamber music ensembles, choirs, museums, botanical gardens, zoos, archives, libraries, as well as monuments of an architectural and gardening nature. The same shall apply with regard to transactions executed by similar institutions of other taxable persons, if the responsible Federal state authority certifies that they carry out the same cultural tasks as those institutions mentioned in sentence 1. Transactions carried out by stage directors and choreographers at institutions within the meaning of sentence 1 and 2 are also VAT exempt, if the responsible Federal state authority certifies that their artistic services directly serve these institutions. Museums, within the meaning of this regulation, are scientific collections and art collections;

2. the presentation of theatre performances and concerts by other taxable persons, if the performances are performed by the theatres, orchestras, chamber music ensembles or choirs referred to in lit. a;

1. services provided by private schools and other general educational or vocational institutions that directly serve the purpose of training or education;

   aa)

   if they are state-approved as substitute schools pursuant to Article 7 paragraph 4 of the Constitution of the Federal Republic of Germany or are permitted under Federal state law, or

   bb)

   if the responsible Federal state authority certifies that they properly prepare persons for a profession or for taking an examination before a body governed by public law,

2. teaching services by independent teachers that directly serve the purpose of training or education;

   aa)

   in universities within the meaning of §§ 1 and 70 of the Framework Act for Higher Education and at general educational and vocational public schools, or

   bb)

   in private schools and other general educational or vocational institutions, provided they meet the requirements set out in lit. a;

(deleted)

1. lectures, courses and other presentations of a scientific or educational nature carried out by bodies governed by public law, by administration and business academies, by adult education centres or by institutions that serve a charitable purpose or the purposes of a professional body, provided that the revenue is primarily used to cover the incurred costs;

2. other cultural and sporting events carried out by taxable persons mentioned in lit. a, provided that the consideration consists of participant fees;

1. the education of children and young persons and closely linked supplies of goods and services provided by public body institutions to which such tasks are assigned, or by other institutions which pursue comparable goals to those of the public body institutions and which do not pursue systematic realisation of profits; in cases where profits are nevertheless generated, they should not be distributed, but must be used for the maintenance or improvement of the services provided by the institution,

2. the care of children and young persons and closely linked supplies of goods or services which are provided by public body institutions or by other institutions which are approved as institutions with a social character. Institutions with a social character within the meaning of this provision shall be categorised as such institutions provided that they

   aa)

   act on the basis of social security statutory rules or

   bb)

   provide services which, in the previous calendar year, have been completely or predominantly paid for by public body institutions,

3. boarding and accommodation services to children in day-care institutions, students and scholars at universities, within the meaning of the university law of the federal states, at a public or officially recognised university of cooperative education, at public schools and at substitute schools, which are officially recognised by Article 7 paragraph 4 of the German Constitution or permitted by federal state law, as well as at supplementary schools officially recognized by public body institutions or by other institutions which do not pursue systematic realisation of profits; in cases where profits are nevertheless generated, they should not be distributed, but must be used for the maintenance or improvement of the services provided by the institution.

The provision of accommodation, boarding and usual benefits in kind, which the taxable persons provide to persons who are involved in the provision of the services mentioned in sentence 1 lit. a and b as remuneration for such services are also VAT exempt. Young persons within the meaning of this regulation are persons who have not yet reached the age of 27. With regard to services mentioned in numbers 15b, 15c, 21, 24 and 25, the VAT exemption is only applicable based on the conditions mentioned therein;

services provided by the German Youth Hostels, Hauptverband für Jugendwandern und Jugendherbergen e.V. (Youth Hostel and Hiking Association), including sub-organisations linked to this association’s institutions and youth hostels, provided that the services directly serve the purposes stipulated in the articles of association or if, to the persons providing such services, accommodation, boarding and the usual benefits in kind are granted as remuneration in return for the services provided. The same shall apply with regard to services provided by other associations that perform the same tasks under the same conditions;

youth welfare services, in accordance with § 2 paragraph 2 of the Eighth Book of the Social Security Code and foster care services to children according to § 42 of the Eighth Book of the Social Security Code and adoption agency services according to the Adoption Agency Act, where these services are provided by the public youth welfare service or other institutions with a social character. Other institutions with a social character within the meaning of this regulation shall be

1. institutions providing independent youth welfare services approved by the responsible youth state authorities, churches and religious associations under public law,

2. institutions, provided that they

   aa)

   hold a permit to provide their services according to the Eighth Book of the Social Security Code or do not require such a permit according to § 44 or § 45 paragraph 1 numbers 1 and 2 of the Eighth Book of the Social Security Code,

   bb)

   provide services that were reimbursed fully or for the most part in the previous calendar year by the provider of public youth welfare service or by institutions under lit. a,

   cc)

   provide child day care services, for which they are suitable in accordance with § 23 paragraph 3 of the Eighth Book of the Social Security Code or,

   dd)

   provide adoption agency services, for which they are approved according to § 4 paragraphs 1 or 2 of the Adoption Agency Act.

Also VAT exempt are

1. the execution of cultural and sporting events, if the performances are given in person by the beneficiaries of the youth welfare service or if the revenue is primarily used to cover the incurred costs and such services are closely linked to the services described in sentence 1,

2. accommodation, boarding and the usual benefits in kind that these institutions provide to the recipients of the youth welfare services and youth welfare employees, as well as to the persons involved in the provision of the services referred to in sentence 1 as remuneration for the provided services;

3. services provided by institutions that are appointed guardians pursuant to § 1773 of the Civil Code or supplementary care providers pursuant to § 1809 of the Civil Code, provided that these services are not reimbursed pursuant to § 1877 paragraph 3 of the Civil Code.

4. institutions, which are appointed as guardians for the purpose of legal proceedings in accordance with §§ 158, 174, 191 of the Act on Procedure in Family Matters and Non-Contentious Matters, if the fees charged by these institutions are approved by the responsible authorities or do not exceed the approved fees; in the case of turnovers where a fee application is not requested, the fees charged must be lower than the fees for similar turnovers charged by those business enterprises obliged to pay VAT;

volunteer services, provided that

1. they are carried out for bodies governed by public law, or

2. the consideration for these services consists only of the reimbursement of expenses and an appropriate remuneration for time spent;

1. the supply of personnel by religious and philosophical institutions for the activities referred to in number 14 lit. b, in numbers 16, 18, 21 and 22 lit. a and in numbers 23 and 25 and for purposes of spiritual succour;

2. the supply of agricultural and forestry workers by legal persons under private or public law for agricultural and forestry businesses (§ 24 paragraph 2) with a maximum number of three full-time employees for the purposes of covering the loss of the business owner or of his family members employed in the business on a full-time basis due to illness, accident, pregnancy, limited ability to work or death, as well as the supply of farmhands to the statutory provider of social security;

the supply of goods for which the input tax deduction is excluded in accordance with § 15 paragraph 1a or if the taxable person has exclusively used the supplied goods for an activity which is VAT exempt in accordance with numbers 8 to 27 and 29;

Services provided by independent associations of persons resident in Germany, the members of which pursue non-commercial welfare activities, which are VAT exempt according to numbers 11b, 14 to 18, 20 to 25 or 27, vis-á-vis the members resident in Germany, provided that these services are used for the direct purposes of carrying out such activities and the association requests, from its members, only exact compensation of the respective part of the collective costs, provided that this VAT exemption does not lead to distortion of competition.