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 by the government, it has passed to the parliament for review. This could be completed by mid-December 2023.
This includes the following range of VAT reforms which would come in effect from 2024 unless otherwise indicated:
- Launch of German e-invoicing, voluntary from 2025; to be mandated from 2026
- Imposing the domestic reverse charge for carbon certificate trading
- Raising the threshold for cash-based VAT reporting from €600,000 to €800,000 per annum
- Withdrawal of the requirement for small taxpayers to have to submit advance tax declarations if their VAT due does not exceed €2,000 per annum. This had previously been €1,000.
- Application of reduced VAT rate for services provided to non-profit and charitable organisations
