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Category archive: German VAT

German VAT changes

There have been a number of updates to the German VAT compliance regime. These include: It has been confirmed by the Finance Ministry that non-residents may not reclaim via 8th or 13th VAT Directive refunds any input VAT on invoices relating to exports or intra-community dispatches if the conditions for zero-rating have been met. The…

Germany referred to ECJ travel agents VAT

The European Commission has today referred Germany to the European Court of Justice (ECJ) for its continuing non-compliance with the EU VAT Directive on travel agents. The EC had already sent Germany a reasoned opinion in 2015, which Germany has ignored. Tour Operators Margin Scheme The Directive provides a compulsory Tour Operators Margin scheme (TOMS)…

German warehouse VAT

    The European Court of Justice’s Advocate General (AG) has opined on a VAT treatment of goods held within customs warehouses. Eurogate Distribution GmbH and DHL Hub Leipzig GmbH Eurogate operated a German bonded warehouse to hold non-EU cleared goods destined for export from the EU for its customers. Eurogate failed to record these…

Germany VAT changes

    The Germany VAT Amendment Act for 2015 has been approved by the Bundesrat, and implemented last month. Changes included: Public bodies carrying out commercial activities are deemed to be exempt from VAT below the German VAT registration threshold. This is currently €17,500. Extension of the domestic reverse charge for construction services to include…

German guidance on VAT adjustments

    Germany’s Ministry of Finance has provided guidance on the procedures for correcting when too much German VAT been paid. The new decree, based on a court ruling from the Budesfinanzhof, concerns a transaction when the incorrect tax was paid because of the use of an incorrect VAT rate. The court held that the VAT must first…

Germany ordered to change Tour Operator VAT

    Germany has received a reasoned opinion (request) from the European Commission to bring its Tour Operators Margin Scheme (TOMS) into line with the EU VAT Directive.   TOMS allows tour operators, buying and selling holiday packages to declare VAT only on the profit margin element of their trade. This simplification helps to eliminate…

Germany Intrastat threshold rise to €800,000

    German is to increase its Intrastat arrivals (Eingang) threshold from €500,000 to €800,000 per annum from 1 January 2016. There will be no increase to the dispatches (Versand) threshold of €500,000. Intrastat and movements of goods Intrastat is a reporting requirement for businesses moving goods across EU internal borders – excludes imports or…

German live events VAT ruling

    The German fiscal court, BMF, provided some further VAT guidance on the rules surrounding services provided to exhibitions and other live events. The provision of hosts/hostesses is also included now within the definition of the three services which would make normally property-related service instead qualify for the general service rule.  Under the latter,…

Germany intra-community nil VAT rating

A lower tax court in German has ruled that full accounting and invoice records are not a prerequisite for entitlement to zero nil VAT rating on intra-community supplies. The case under review concerned a German carpet seller who transferred stocks of carpets from its site in Germany to a warehouse in Netherlands. Under EU VAT…

German low value consignment stock VAT

The German fiscal court (BFH) ruled this year on the details of the application of import VAT relief for small consignment sales to consumers. Under the EU VAT Directive, imports of small value packages are exempt from the usual import when sold to EU consumers. EU member states are free to set their own limits….