VAT compliance and reporting rules in Germany Below is summary of the major rules provided under German VAT rules (2005 VAT Act; Umsatzsteuer-Anwendungserlass, UStAE (Application Decree;); and Umsatzsteuer-Durchführungsverordnung, UStDV), plus adoption of EU VAT Directive provisions . VAT Calc’s single platform VAT Calculator & VAT
Payments for digital properties within online games outside scope of VAT The German Federal Tax Court, BFH, has ruled that sales or leasing for consideration of virtual buildings or land is outside the scope of VAT. The case covered the use of the US-based game,
Annual guidance from Ministry of Finance on technical Value Added Tax issues The Federal Ministry of Finance has published the annual VAT book, this one covering 2020/21. Topics covered in this year’s edition include: UStG – German Value Added Tax Act UStDV Value Added Tax rebate
Coalition new leaders confirm electronic invoice reporting system as soon as possible to fight VAT fraud; backing for EU definitive VAT system; import VAT reforms The new German government coalition of the SPD, Free Democratic Party (FDP) and Green Party have now confirmed on 24
€26bn net gain to the economy during lockdown as standard rate cut from 19% to 16% in 2nd half of 2020 German’s controversial six-month 3% standard VAT rate cut to 16% may have worked contrary to received views by economists and VAT thought leaders. The
The German Ministry of Finance has highlighted a very low uptake of the new Import One-Stop Shop (IOSS) scheme to report sales of imported goods to EU consumers. IOSS is part of the EU e-commerce VAT package reforms introduced on 1 July 2021 to limit
Coalition partners include digital reporting and no VAT hikes in negotiations Following the inconclusive German government elections, the SPD, Free Democratic Party (FDP) and Green Party have drawn-up a range of tax policies for their potential coalition. This includes digital reporting of transactions – an
Germany wins VAT Directive emissions trading derogation The Council of the EU has permitted Germany to introduce the domestic reverse charge on carbon emission trading to prevent suspected VAT fraud. This includes missing trader fraud where criminals claim to be selling emission certificate cross-border at
Germany’s standard VAT rate has returned to 19% on 1 January 2021. Restaurant 7% rate continues until end of 2022 Germany temporarily cut its 19% standard VAT rate to 16% from 1 July until 31 December 2020. This was to help consumers and businesses struggling
Whilst Germany shows one of the lowest VAT Gaps in the European Union, there is still room for improvement. That is the conclusion of the state Audit Office which focused in on e-commerce fraud, estimated to cost Germany nearly Euro 1 billion per year. Read
