Use of VAT forms is a privilege extended to personnel under the SOFA, but there are restrictions on the use of VAT forms. To avoid losing VAT relief privileges, avoid the following prohibited practices:
• Using an un-priced purchase order (NF-1) for any amount of €2,500 or more.
• Using an un-priced (NF-1) or priced (NF-2) purchase order that has an issue date after the designated agent (customer) “order date,” vendor’s delivery date, or date of invoice (VAT form must be printed before ordering or buying).
• Splitting the amount between two un-priced (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. This activity is considered “trading in the commercial sector” and is illegal, regardless of who buys the automobile, parts, or service.
• Buying items for resale or other commercial purposes. This activity is considered “trading in the commercial sector” and is illegal in conjunction with tax relief, regardless of who buys the items or services offered.
• 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 repair costing €2,500 or more without IMCOM-Europe approval and for unauthorized repairs or renovations below €2,500.
• Using VAT forms for utilities or telecommunication services based on long-term contracts.
• Making other purchases that are prohibited by AE Regulation 215-6/ USAFE Instruction 34-102.
• Returning VAT forms that are not completed properly (for example, amount in box 4, signature in boxes 7 or 10, dates in boxes 8 or 11, box 12, box 13).
