info@vatlive.com

Category archive: German VAT

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,…

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…

UK & German divided ahead of 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 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…

Menu