Germany imposes anti-fraud monthly VAT filings on shell companies

Sun 2nd Nov 2014

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 formed to hold legal title to taxable entities in acquisitions of going concerns. This includes the annual German VAT return. In particular, the German tax office wishes to target such shell companies that will eventually provide taxable supplies.