VAT Exemption for Supplies and Services to NATO Headquarters in Germany

WW+KN, a Baker Tilly Company, provides specialized support for suppliers and service providers to NATO headquarters in Germany. Properly handling VAT exemption forms is essential to comply with German tax regulations and benefit from tax relief under the Supplementary Agreement to the Protocol on the Status of NATO Headquarters.

Key Points

1. Legal Framework:
   • According to Article 14(2) of the Supplementary Agreement to the Protocol on the Status of NATO Headquarters (BGBl. 1969 II S. 2009), supplies and services to NATO headquarters are exempt from VAT. This regulation aligns closely with Article 67 of the Supplementary Agreement to the NATO Status of Forces Agreement (SOFA).
2. Applicable NATO Headquarters and Organizations:
   • The VAT exemption applies to a wide range of NATO headquarters and organizations, including:
     • Supreme Headquarters Allied Powers Europe (SHAPE), Belgium.
     • Allied Air Command (AIRCOM), Ramstein, Germany.
     • NATO School, Oberammergau, Germany.
     • Joint Air Power Competence Centre (JAPCC), Kalkar, Germany.
     • Confined and Shallow Waters Centre of Excellence (CSW COE), Kiel, Germany.
     • Military Engineering Centre of Excellence (MILENG COE), Ingolstadt, Germany.
     • NATO Airborne Early Warning Force Command (NAEW-FC HQ), Geilenkirchen, Germany.
     • Joint Force Training Centre (JFTC), Bydgoszcz, Poland.
     • Deployable Air Command and Control Centre (DACCC), Poggio Renatico, Italy.
     • Allied Combined Air Operations Centre (CAOC), Torrejón, Spain.
     • NATO Communications and Information Systems (CIS) locations such as in Mons, Belgium, and Brunssum, Netherlands.
     • Centre for Maritime Research and Experimentation (CMRE), La Spezia, Italy.
     • NATO Special Operations Headquarters (NSHQ), Casteau (Mons), Belgium.
     • Multinational Division Northeast (MND NE), Elblag, Poland.
     • NATO Force Integration Units (NFIU) in various countries including Latvia, Estonia, Lithuania, and Poland.
     • NATO Support and Procurement Agency (NSPA), Capellen, Luxembourg.
     • NATO Rapid Deployable Corps in countries such as Spain, Italy, and France.
3. Documentation Requirements:
   • Suppliers must provide proper documentation to validate the VAT exemption, including an appropriately completed procurement form (Abwicklungsschein).
   • Documentation should comply with § 4 Nr. 7 Satz 1 Buchstabe d UStG and be thoroughly maintained as per German VAT regulations.
4. Special Considerations:
   • Only transactions involving officially designated NATO headquarters and organizations qualify for the VAT exemption.
   • The BMF’s (Bundesministerium der Finanzen) guidelines from letters dated January 25, 2022, and April 28, 2023, provide detailed instructions on the application and documentation requirements for VAT exemptions.

Services Provided by WW+KN

WW+KN offers a comprehensive range of services to ensure smooth VAT exemption processing for suppliers to NATO headquarters. These services include facilitating VAT registration, managing compliance and documentation, providing expert consultation on VAT exemption procedures, and liaising with German tax authorities to resolve any issues and ensure smooth processing of VAT exemptions.

By adhering to these detailed guidelines, businesses can ensure compliance and optimize the benefits of VAT exemptions under the NATO agreements, facilitating smoother operations when supplying to NATO headquarters in Germany. For more detailed guidance and support, please visit our website or contact us directly.