German Finance Ministry clarifies VAT on vouchers and construction payments

The Federal Ministry of Finance (BMF) issued a letter on 29 April 2026 that refines the VAT treatment of multi‑stage voucher distribution chains. A multi‑purpose voucher triggers tax only at redemption, not at issuance or transfer. Intermediaries are not mere pass‑throughs; when acting on their own account they provide a taxable service and must declare VAT on the margin earned at each level. The accompanying amendment to the VAT Application Decree incorporates these rules.

Separate guidance for the construction and craft sectors explains that the applicable VAT rate depends on the date of performance: completions after 30 June 2020 are taxed at 16 %, while those on or before 31 December 2020 fall under the 19 % rate. The rules also detail the treatment of advance payments, partial invoices and final invoicing, stating that corrections are required only in the final invoice and that advance payments retain the rate originally applied.

Together, the guidance provides clear criteria for tax calculation and invoicing across voucher‑based sales and construction services in Germany.