In the eleventh part of our KMLZ newsletter series on the Annual VAT Act 2020 we comment on the planned changes regarding cross-border price reductions, which the supplier grants, not directly to his customer, but to another recipient in the supply chain. With the implementation of sec. 17 para 1 sentence 6 into the German VAT Act, a legal loophole will be closed. When the Annual VAT Act 2020 comes into effect, it will no longer be possible to reduce the output VAT when the supply to the recipient, who benefits from the price reduction, is VAT exempt.
Source: kmlz.de
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