Tax relief for USAG community members

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USAG Stuttgart Public Affairs

Service members, civilian employees and family members who fall under the Status of Forces Agreement are eligible for the VAT and UTAP tax savings. The Value Added Tax is imposed by Germany on a wide variety of goods and services. Retail goods are taxed at 19%, food and lodging at 7%. The Utility Tax Avoidance Programs offers savings on utilities.

VAT (Value Added Tax)

Once a purchase is complete, the top copy of the form is returned to the VAT office; the buyer keeps the pink form. Photo by Kevin Abel, USAG Stuttgart Public Affairs

For purchases less than €2,500 net price (after tax), a VAT form NF-1 will be used.  Not all vendors accept the VAT form since this is a voluntary program. VAT forms may be purchased for $5 per NF-1 form and each sponsor may only have 10 open forms out at any one time.

VAT forms cannot be used for costs related to buying or selling real estate, purchase of automobiles that will NOT be registered in the USAEUR vehicle registration system and for any items used in a commercial activity (such as a home business), long-term utility, telephone and Internet contracts.

For purchases of €2500 or greater, a NF-2 VAT form will be used. This form costs $65. Before making any commitment to purchase an item €2,500 or more, contact the VAT Office to start the process. These purchases must be made out to CMWRF and the person making the purchase.

Prohibited practices

  • Using an unpriced purchase order (NF-1) for any amount of €2,500 or more.
  • Using an unpriced (NF-1) or priced (NF-2) purchase order after the fact.
  • Splitting invoice amounts between two or more unpriced (NF-1) purchase orders to avoid using a priced (NF-2) purchase order for an amount of

€2,500 or more

  • Purchasing goods or services that benefit ineligible persons.
  • Buying used automobiles, repair parts or services for resale.
  • Buying items for resale or commercial purposes.
  • Buying new or used automobiles from German vendors for registration in the German (or other non-U.S. Forces) vehicle registration system (Kfz-Zulassung).
  • Using VAT forms for costs related to buying or selling real estate.
  • Using VAT forms for construction, renovation or home improvements.
  • Using VAT forms for utilities or telecom services based on long-term contracts.
  • Making other purchases that are prohibited by AE 215-6/USAFE Instruction 34-102.
  • Returning VAT forms that are not completed properly.
  • Using an expired VAT form (VAT forms have a validity of 2 years) from date of issue.

For more information, please contact the VAT Office at DSN: 596-3678 or CIV: 09641-70-596-3678.

UTAP (Utility Tax Avoidance Program)

Personnel may be exempted from utility taxes through the Utility Tax Avoidance Program. Enrollment in this program may be mandatory for some personnel receiving housing or living quarters allowance. There is a fee of $99 for enrollment. Download the application form:  http://stuttgart.armymwr.com/europe/stuttgart/programs/utap.

For more information on the UTAP program, call DSN: 596-3452/3366/3453 or CIV: 09641-70-596-3452/3366/3453.

VAT/UTAP Office Hours
The Tax Relief Office is on Panzer Kaserne in Bldg. 2915, on the 2nd floor. The VAT office is open Monday through Thursday, 8 a.m. – 5 p.m., and Fridays 8 a.m. – 6 p.m.; and the UTAP office is open weekdays 8 a.m. – 5 p.m.