In our beinformed of 15 December 2020, we already reported on the German Fund Jurisdiction Act, the objective of which was to make Germany more attractive as a fund location through a series of tax measures. One of these measures was the extension of the circumstances for a finding of VAT-exempt management under § 4(8)(h) of the German Value Added Tax Act (Umsatzsteuergesetz) of venture capital funds. This measure came into force on 1 July 2021, but without a definition of venture capital funds. The tax authorities have now made up for this omission almost a year after the amendment came into force with a letter by the German Federal Ministry of Finance (Bundesfinanzministerium). The definition is based on venture capital funds as defined in the EU Venture Capital Funds (EuVECA) Regulation. In addition, further requirements are mentioned in order to benefit from the advantage of VAT-free management.