Oct 2024: EC grants Germany VAT Directive emissions trading derogation extension The Council of the EU has permitted Germany to extend the domestic reverse charge on carbon emission trading to prevent suspected VAT fraud. This includes missing trader fraud where criminals claim to be selling
Federal Government: Jan 2025 obligations may be covered by dedicated e-mail box for suppliers’ structured electronic invoices The first phase of German e-invoicing mandate starts on 1 January 2025. All German resident taxpayers must be able to receive structured, or machine readable, electronic invoices. Following
Switch from 19% standard to 7% reduced VAT rates January 2025 The Value Added Tax rate on the sales of art work in German will fall from 19% to 7% from 1 January 2025. This is a return to the reduced rate reverses the hike
VAT compliance and reporting rules in Germany 2024 Below is summary of the major rules provided under German VAT rules (2005 VAT Act; Umsatzsteuer-Anwendungserlass, UStAE (Application Decree;); and Umsatzsteuer-Durchführungsverordnung, UStDV), plus adoption of EU VAT Directive provisions. Check our country VAT guides for other jurisdictions. VAT Calc’s single
1-year delay for single-use plastics levy The annual levy on the use of single-use plastics in Germany is being delaye by one year to 1 January 2025. Germany’s EWKFondG is based on the EU’s Single-Use Plastics Directive The Germany levy is charged on the use
Increase to €800,000 annual threshold for cash-based VAT scheme Germany is raising the sales threshold for small businesses to join the cash-based VAT scheme. This offers eligible tax payers to only settle VAT due based on actual income received as opposed to that invoiced –
Federal Ministry of Finance latest annual tax guide issued The annual VAT guide has been issued by the German Finance Ministry (Bundesministerium der Finanzen BMF) – this one covering 2022. It includes: VAT Act; VAT Implementation Ordinance; VAT Application Decree; VAT System Guidelines; and excerpts
Temporary energy VAT cut introduced with spiking inflation in 2022 is to end 1 March 2024 – 1 month early The German government plans to end the temporary reduction from 19% to 7% for domestic energy on 31 December 2023 have been modified by the
As part of major investment and structural reforms, range of VAT measures now being review in German parliament Germany has launched a major set of investment and innovation bill which includes a set of tax reforms. Having been approved at the end of last month
