Germany Exempts Jewish Agency Purchases from Sales Tax

The Ministry of Finance has ruled that deliveries of goods for the account of the Jewish Agency are considered as shipments to a foreign purchaser and therefore not subject to a sales tax.

Orders placed by the Jewish Agency are independent of reparations shipments. For the most part, they are paid for with funds accruing to the Jewish Restitution Successor Organization. Because these funds are in the form of blocked marks rather than in foreign currency, it was heretofore questionable whether Jewish Agency purchases should enjoy the tax benefits applicable to exports.

The Israel purchasing mission has announced in the German press that it will not countenance the employment of agents and brokers in the purchase of German goods under the terms of the reparations pact. The announcement became necessary, because of frequent approaches made to German firms by individuals claiming to be representatives of advisers to the mission.

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