The German Federal Ministry of Finance published guidance on January 2, 2026, clarifying VAT exemptions for aviation services under Section 4 No. 2 and Section 8 Para. 2 of the German VAT Act, replacing previous interpretations in Section 8.2 of the VAT Application Decree.

The guidance addresses exemptions for international air transport services and related aviation operations, providing detailed criteria for determining which services qualify for VAT exemption. The rules apply to both passenger and cargo transport services conducted primarily in international air traffic.

The ministry also published an accompanying list of domestic enterprises that operate primarily in international air transport for commercial purposes, as required under Section 8 Para. 2 No. 1 of the VAT Act. This list serves as a reference for determining which operators qualify for the exemption provisions.

The updated guidance reflects ongoing efforts by German tax authorities to clarify VAT treatment in the aviation sector, particularly as the industry continues to recover from pandemic-related disruptions and adapt to evolving regulatory frameworks across the EU.