On July 25, 2019, the EU Commission decided to take Germany to the European Court of Justice (ECJ) for incorrectly applying the special VAT regulation for farmers.
The Federal Court of Auditors has noted that German farmers and foresters to whom the average rate taxation applies receive a flat-rate deduction of input tax which exceeds the input tax they pay. However, according to the EU Commission’s rules, this is not permitted and leads to major distortions of competition on the internal market, especially in favour of large farmers who have no difficulties with the normal VAT rules.
Source: js-steuerberater.de
Latest Posts in "Germany"
- Germany Approves 2026 Tax Bill Introducing VAT Consolidation Option from 2030
- Lower-Cost Insurance Tariff Brokerage Is VAT-Exempt
- Germany Unveils Action Plan Signaling VAT Reporting System and Extended Archiving Rules
- Factur-X and ZUGFeRD, a technical overview
- Germany Approves Draft Annual Tax Act 2026 With Major VAT Grouping Reform
