Die umsatzsteuerliche Behandlung der Kommunen

The VAT treatment of municipalities is undergoing a transformation. With the introduction of § 2b of the VAT Act, which can be applied to revenues from January 1, 2017, and must be applied from January 1, 2027, a fundamental paradigm shift is taking place. The reason for this is a stronger alignment with the requirements of the VAT system directive. The volume begins by addressing the primary legal and constitutional foundations of the VAT system for municipalities. It explores the question of the rationale and purpose behind treating municipalities as tax subjects and the exemption from personal tax liability. The focus of the investigation is on the conditions under which municipalities provide taxable services as entrepreneurs and the conditions under which municipalities do not qualify as entrepreneurs according to § 2b of the VAT Act. Additionally, the implications for the right to deduct input tax are discussed. Finally, based on the analysis of the leeway explored in the investigation, a perspective on the legislative options at both federal and state levels, as well as the design possibilities for municipalities, is provided.