On 30 March 2022, the German government approved a draft bill providing for a reduced interest rate on late tax payments and refunds, which was published by the Ministry of Finance (MoF) on 22 February 2022.
The draft bill proposes a reduced interest rate of 0.15% per month (i.e., 1.8% per year) on late tax payments and refunds with retroactive effect as from 1 January 2019. The draft bill also proposes that the interest rate be evaluated every three years, with the first evaluation occurring in 2026. The draft bill notes that changes are not anticipated in any other cases (e.g., interest on deferrals, interest applied to pension accruals discounting, etc.)
Source Deloitte
Latest Posts in "Germany"
- BMF Clarifies VAT Exemption Requirements for Pre-Import Deliveries Under § 4 No. 4b UStG
- Strengthening FKS Powers and Digital Tools to Combat VAT Fraud and Undeclared Work in Germany
- CESOP VAT: Validation Result Delays Due to Security Certificate Exchange Until April 2026
- Germany Updates Peppol, ZUGFeRD, and GEBA Standards to Boost Digital Invoicing and Interoperability
- Germany E-Invoicing: Small Businesses Exempt from Issuing, Must Receive and Store Digital Invoices
