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German parliament reviews 2024 VAT reforms

As part of major investment and structural reforms, range of VAT measures now being review in German parliament

Germany has launched a major set of investment and innovation bill which includes a set of tax reforms.

Having been approved at the end of last month by the government, it has passed to the parliament for review. This could be completed by mid-December 2023.

This includes the following range of VAT reforms which would come in effect from 2024 unless otherwise indicated:

  • Launch of German e-invoicing, voluntary from 2025; to be mandated from 2026
  • Imposing the domestic reverse charge for carbon certificate trading
  • Raising the threshold for cash-based VAT reporting from €600,000 to €800,000 per annum
  • Withdrawal of the requirement for small taxpayers to have to submit advance tax declarations if their VAT due does not exceed €2,000 per annum. This had previously been €1,000.
  • Application of reduced VAT rate for services provided to non-profit and charitable organisations


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