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Category archive: German 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….

France, Germany, Italy and Poland call for low VAT on ebooks

The UK has been left as the last major supporter of higher VAT rates on e-books. Today, France, German, Italy and Poland called on the European Commission (EC) to enable member states to levy the same reduced VAT rate on e-books as they already can on printed books. The countries call on the Commission “to…

EU – German case may lift multi-million UK financial services VAT threat

New legal action by the European Commission (EC) against Germany may put to rest a long-standing EU threat to raise the outsourcing tax bill of UK banks and insurers my hundreds of millions of pounds. EC takes Germany to European Court of Justice Last week, the EC referred Germany to the European Court of Justice…

Germany rules on VAT invoice case

The German courts have recently ruled on the details required to make up compliant VAT invoice for an exempt intra-community supply. The case concerned the supply of cars into Austria. The cars were supplied on the basis of being VAT zero rated as an intra-community supply between two VAT registered businesses. However, the principle invoice…

Germany challenged by EU to extend VAT exemption

The European Commission has challenged Germany to extend the VAT exemption on group shared services to all industries. Group VAT exemptions allow related companies to forego charging VAT on intra-group transactions to help reduce cash-flow and administrative burdens. At present, the EU VAT Directive permits such schemes in member countries irrespective of the industry. Such…

UK & Germany divided on bitcoin EU VAT case

The European Court of Justice (ECJ) is now reviewing EU member states’ views on the tax treatment of digital currencies, such as bitcoin, ahead of a formal ruling. A sharp division has emerged in this process between the UK and Germany on the liability of bitcoin to VAT, which may put EU-based traders at a…

Germany downloadable audio books 19% VAT

The German Ministry of Finance has confirmed that audio books via downloads are subject to the standard German VAT rate of 19%. This compares to physical books, which benefit from being levied at the 7% reduced VAT rate. Audio books provided by other physical means, e.g. CD, DVS, memory sticks etc, are subject to the…

Germany imposes anti-fraud monthly VAT filings on shell companies

Germany has acted to reduce the problems of VAT fraud being perpetrated through shell companies acquiring German companies and falsely claiming input VAT. German monthly VAT filings Generally, only VAT taxable newly registered companies are required to complete monthly VAT filings for the first two years of their establishment. This is now being extended companies…

German VAT compliance update

There has been a range of changes to the German VAT regime. These changes include: The application of the reverse charge on mobile phones has been extended to include any devices containing SIM cards for mobile access. The domestic reverse charge applies in German on sales above €5,000 to help eliminate missing trader fraud The…

German non-EU VAT recovery sent to European Court of Justice

The European Commission (EC) has referred Germany to the European Court of Justice over its requirements for non-EU VAT recovery. If a foreign company is conducting business in Germany, it may incur German VAT on expenditure such as hotels, restaurants, taxis, hire of equipment etc.  If the company is tax registered in their own country,…

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