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Category archive: German VAT

Germany 2015 EU B2C electronic services VAT conflicts with EU Directive

German is one of the latest EU member states to adopt the January 2015 changes to the EU VAT Directive on the place of supply rules for electronic, telecoms and broadcast services to consumers. However, key differences on the use and enjoyment rules have emerged for non-EU suppliers. The German Parliament approved the changes to…

German VAT Act changes

The German VAT Act has been amended by the Federal Council this month. The principle changes include: Incorporation of the 2015 EU Mini One Stop Shop changes, including the change of the place of supply rules to the location of the consumer on B2C electronic and broadcast services on 1 January 2015 Reclassification of audio…

Germany curtails non-resident VAT recovery following tax case

The German Ministry of Finance has acted curtail an extended VAT recovery option that was thrown open to foreign companies. German Federal Tax Court helps VAT recovery The tax ruling in August 2013 opened up the option for non-resident businesses to apply for repayment of German VAT incurred via the regular German VAT return even…

Germany postpones introduction of single VAT rate

The German tax office has decided not to follow-up a proposal to combine the current 19% standard and 7% reduced German VAT rates. The proposal had been to combine the rates at 16%. EU calls for fewer VAT rates The European Commission has repeatedly called for member states to reduce the number of VAT rates,…

German labour tax cuts call from OECD hint at VAT rate increase

The latest report by the Organisation for Economic Co-operation and Development (OECD) on Germany’s economy point out that labour taxes remain too high, and that it needs to look at other revenue sources German VAT increase to 19% to cut labour taxes The OECD’s survey of the German economy has highlighted that Germany is still…

Germany VAT does not apply to subsidies to staff canteens

The German Federal Court has overruled the German tax office on its interpretation of VAT treatment on subsidies to staff canteens. The German VAT office treated subsidies by employers to the operators of their staff canteens as a VAT event. And that the canteen operator should levy German VAT at 19% on their invoices to…

Germany stiffens VAT penalties

The German Finance Minister agreed this week to impose tighter penalties where voluntary disclosure is involved. When companies detect errors in their German VAT returns, the will generally receive a much more lenient fines and interest penalties. Often, for relatively small amounts, and fine will be waived. The current German VAT penalty regime is as…

Germany may cut VAT rate on ebooks to 7%

German VAT on ebooks may be about to drop from the standard German VAT rate of 19% down to the reduced 7% rate. This would come despite opposition from the European Commission (EC) on reduced VAT on digital book. There are already a number of court cases lodged with the European Court of Justice concerning…

ECJ rules on German services fiscal neutrality question

The European Court of Justice (ECJ) has ruled that European tax authorities should provide equal VAT treatments to providers of similar services  to key customers even where those providers may otherwise generally provide services with differing terms. German VAT on taxi services The two, linked cases concerned the VAT treatment differences between licensed taxi operators …

German VAT on intermediary discounts

The European Court of Justice (ECJ) has provided guidance on situations where an intermediary provides a discount on services, and the resulting German VAT treatment. Germany VAT discounts The case in question concerned a German holiday agent (intermediary).  It sold on the holiday packages of tour operators to final customers.  In return, it received a…

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