Section 2: Exemption from VAT and tax refunds

§ 8 Transactions relating to maritime and aviation traffic

(1) Transactions relating to maritime traffic (§ 4 number 2) shall be:

1. the supply, modification, repair, maintenance, chartering and leasing of vessels for maritime traffic which are carried out for acquisitions by the maritime traffic sector or supplies pertaining to the rescue of shipwrecked persons (from positions 8901 and 8902 00, from sub-position 8903 92 10, from position 8904 00 and from sub-position 8906 90 10 of the customs tariff);

2. the supply, repair, maintenance and leasing of goods that are intended for the equipping of the vessels mentioned in number 1;

3. the supply of goods intended for the provisioning of the vessels mentioned in number 1; the supply of goods consisting of onboard provisions for inshore fishing vessels is not VAT exempt;

4. the supply of goods intended for the provisioning of warships (sub-position 8906 10 00 of the customs tariff) on missions during which a port or anchorage is visited abroad and outside the coastal area within the meaning of the customs regulations;

5. supply of services, other than those mentioned in numbers 1 and 2, intended to meet the direct needs of the vessels mentioned in number 1, including their equipment and cargoes.

(2) Transactions relating to aviation (§ 4 number 2) shall be:

1. the supply, modification, repair, maintenance, chartering and leasing of aircraft, intended to be used by taxable persons who carry out air transportation for consideration and that are predominately concerned with cross-border air transportation or transportation on routes that are exclusively abroad and only undertake an insignificant amount of transportations that take place exclusively within Germany and are VAT exempt according to § 4 number 17 lit. b, and;

2. the supply, repair, maintenance and leasing of goods that are intended for the equipping of the aircrafts mentioned in number 1;

3. the supply of goods intended for the provisioning of the aircrafts mentioned in number 1;

4. supply of services other than those mentioned in numbers 1 and 2 intended to meet the direct needs of the aircrafts mentioned in number 1, including their equipment and cargoes.

(3) The taxable person must demonstrate that the requirements stipulated in paragraphs 1 and 2 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 necessary proof.