2021-06-11-Tax-Relief-Hand-Out.docx 6/10/2021
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All NF-1 transactions (less than €2,500) are paid by the customer directly to the vendor using
cash, credit/debit cards, bank transfers, cashier’s checks, etc. In essence, whatever the vendor
is willing to accept.
Purchases of €2,500 or more:
The NF-2 VAT relief form is also called the “priced” tax relief form.
Customers who want to make VAT free purchases of € 2,500 or more are required to use the
NF-2 VAT relief form.
For NF-2 purchases of €2,500 or more, customers must provide a proper cost estimate
(Angebot/Kostenvoranschlag) from the vendor to the tax relief office before placing the order.
Rules require the vendor to make out the cost estimate to the VAT Office (“CMWRF” or “USAFE
Services”) as the purchaser – your name and address may follow. Tax relief offices are not
permitted to issue VAT forms based on final or standard invoices, order confirmations, or bills of
sale. VAT forms can only be issued, if no order has been placed (yet). As the customer makes
the VAT free purchase with the NF-2 form, the vendor must make out the final or standard
invoice to the VAT Office (“CMWRF” or “USAFE Services” - customer’s name and address may
follow underneath). Invoices showing only the customer’s name are not eligible for VAT Relief.
Some purchases over €2,500 (except for vehicles and furniture) require prior approval (check
with your local Tax Relief Office).
All payments for NF-2 transactions (€2,500 and over) must be made by the VAT Relief Office to
the vendor and must be cashless. Customers may not pay the vendor directly for any portion
of NF-2 transactions. Most VAT Offices currently require that the customer present a cashier’s
check made payable to the respective VAT Office and the Vendor for the full purchase price
without tax. In case of a down-payment requirement, the customer must obtain 2 cashier’s
checks (one for down-payment amount and a second cashier’s check for the balance). Personal
checks or money-orders are not acceptable.
In case of a loan (or partial loan) the customer must provide a letter from the bank stating that
the loan for a certain amount has been approved (see separate hand-out on NF2 transactions).
Use of VAT Relief Forms is not authorized for:
a) Business purposes (home based business, etc.);
b) Purchases on behalf of, or for individuals not entitled to Tax Relief (e.g. German
Neighbors);
c) Purchases using payment plans or credit purchases offered by vendors;
d) Situations involving long-term service contracts such as utilities (electricity, water/sewage,
gas, LPG/Propane), telecommunication service based on long-term contracts, gym contracts
etc.;
e) Legal and other administrative fees in connection with purchase/sale of real estate;
f) Costs associated with home construction, home improvement, renovation, or customized
furnishings with the exception of minor repairs (e.g. painting, wall paper – check with VAT
Office).
g) High-value works of Art, precious metals (gold coins, gold, silver, platinum, etc.) – it is
best to check with the Tax Relief Office prior to making such purchase;
h)Vehicle purchases, if the car will not be registered in the USAREUR-AF vehicle registry