Value added tax for NGO
In contrast to corporate income tax and trade tax, the possible exemption from VAT does not depend on the status of the non-profit organization, but on whether an exchange of services has taken place in return for payment. A number of transactions are therefore exempt from VAT, including donations, the renting and leasing of real estate, services in connection with cultural activities or voluntary work.
How we help you
In our daily practice, we repeatedly find that it is of crucial importance for VAT purposes to classify the various services that can occur in a non-profit organization into the correct spheres as defined by non-profit law. Only then can possible tax exemptions or tax reductions be used and applied correctly.
We support you in advance with the correct sales tax assessment in order to avoid possible misjudgements and to make use of tax reductions.