Deutsche Börse AG: Tax exemption for transaction and connectivity

Release date: 16 Jun 2021

039/2021 Deutsche Börse AG: Tax exemption for transaction and connectivityXetra Circular 039/21

1.  Introduction

The German Federal Ministry of Finance (BMF) has issued a circular on 3 May 2021 on the VAT treatment of services provided by exchanges and other trading platforms for financial products.

According to the BMF, services for which the exchange operates as a Central Counterparty (CCP) and IT services (technical connectivity to exchange software/programs or provision of data center capacity), in general, form VAT-exempt services concerning securities. The same applies for services of the exchange for the settlement of exchange transactions (matching, clearing, settlement) and IT services.

The BMF expressly holds that it is possible to waive the exemption pursuant to sec. 9 German VAT Act (option to tax) and that IT services to recipients who do not participate in transaction are VATable.

2.  Required action

There is no action required for the Participants.

3. Details

Subject to further discussions with the tax authorities, Deutsche Börse AG intends to treat essential services in connection with the utilisation of the Exchange EDP of the Frankfurter Wertpapierbörse (FWB, the Frankfurt Stock Exchange) in general as VAT-exempt as of 1 July 2021. This includes primarily fees dependent on transaction volume and fees for connection components required to provide this service.

In the next weeks, we will publish an additional Xetra circular with a detailed list of fee components and their VAT treatment, in time before the July billing run.  

Further information


All Xetra® Members and Vendors

Target groups:

Traders, Technical Contacts, System Administrators, General


Traders, Technical Contacts, Security Administrators, System Administrators, Nominated Persons, General


Authorised by:

Michael Krogmann, Paul Hilgers

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