In light of the ECJ ruling in "Fiscale Eenheid X", Germany has amended the scope of the VAT exemption for management services of investment funds. As of January 1, 2018 the manage­ment of UCITS within the meaning of Sec. 1 para. 2 of the German Capital Investment Code as well as the management of alternative investment funds, which are comparable to UCITS within the meaning of Sec. 1 para. 3 of the German Capital Investment Code, are exempt from German VAT. In particular, the German Federal Ministry of Finance has issued an interpreting decree on December 13, 2017 with regard to the question as to what is meant by alternative investment funds which are comparable to UCITS. Furthermore, in 2017, the German Federal Ministry of Finance also issued new interpreting guidelines regarding the question of services in connection with German real estate. Our Client Newsletter dated February 6, 2018 provides examples and shows particular consequences arising for funds investing in German real estate.