5 Major Developments in Germany

5 Major Developments in Germany

• Monthly updated overview of VAT exchange rates for 2022

• Vattenfall must report electricity prices with the applicable VAT rate

• VAT benefits based on the additional agreement to the NATO troop statute; Modification of the list of official procurement bodies of the Dutch Armed Forces

• German Federal Fiscal Court on customs valuation: Retroactive transfer price adjustments not to be taken into account (Hamamatsu decision)

• Germany requests permission from European Commission to introduce mandatory B2B e-invoicing

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Bad Debts (Relief for Underpaid Sales Invoices)

• Correcting a VAT amount owed by a pharmacy

Composite Supply 

• VAT exemption according to § 4 No. 14 letters a and b UStG; delivery of medication

Coronavirus

• Germany MOF Further Extends for VAT on Travel Services in Non-EU Countries Due to Coronavirus

Customs

• German Federal Fiscal Court on customs valuation: Retroactive transfer price adjustments not to be taken into account (Hamamatsu decision)

• Appeal in “Hamamatsu” case rejected by German Federal Court

• Technical changes in ATLAS-Export/ATLAS-Import

• Customs valuation for cross-border transactions between affiliated companies in the EU

• Hamamatsu’s final judgment finally delivered. Now it’s the turn of the European Commission!

• Use of the country name “Türkiye” instead of “Turkey” on proofs of origin and movement certificates

• The Hamamatsu TP/customs valuation case comes to a surprising conclusion

• Determination of customs value in the event of subsequent adjustment of transfer prices

• German Court: A downward TP adjustment does not entitle Hamamatsu for a refund of import duties

DAC7

• Obligation to report income on digital platforms

Deduction (Input Tax Credit)

• Flashback on ECJ Cases – C-277/09 (RBS Deutschland Holding) – Deduction of VAT when those goods are used for leasing activities in another Member State

• A farmer’s input tax deduction

• Refusal to deduct input tax in the event of bad faith on the part of the purchaser

• ECJ: Refusal of the right of input VAT deduction not limited to tax loss (C-596/21 – Finanzamt M)

• No input VAT deduction for sale and buy-back

• Input VAT deduction for mobile homes

• ECJ C-596/21 (Finanzamt M) – Judgment – Right to deduct VAT in case of Tax Evasion in a prior transaction

• Guidance: Input VAT deduction for mixed activities (pro rata)

• BFH: Input VAT deductions and reducing staff (so-called outplacement consultation)

• Flashback on ECJ Cases – C-511/10 (BLC Baumarkt) – Germany may apply surface ratio for mixed-use VAT deduction

• Deduction of input VAT on “outplacement consultation” services

• German Federal Fiscal Court: Invoice without correct VAT amount cannot be amended with retroactive effect

• No input VAT deduction if original invoice is amended to add the missing VAT amount

• Input VAT apportionment for mixed-use properties

• BFH to voluntarily pay an advance payment of VAT from the previous year before it is due within the short period of time

• Input VAT allocation according to § 15 paragraph 4 VAT Act (UStG) for mixed-use properties

• Input VAT deduction for outplacement

• Court ruling on taxation of vehicles given to employees for private use

• Input VAT deduction for sports clubs after investments in the sports facility

• ECJ: No input VAT recovery for management holding company

ECJ (European Court of Justice)

• ECJ: No VAT liability results from showing VAT on invoices to final consumers (C-378/21 – P GmbH)

• Flashback on ECJ Cases – C-277/09 (RBS Deutschland Holding) – Deduction of VAT when those goods are used for leasing activities in another Member State

• ECJ C-516/21 (Finanzamt X) – AG Opinion – Exemption for Leasing of immovable property including equipment and machinery

• German VAT group rules – ECJ rulings

• Comments on ECJ C-141/20: ECJ with two landmark decisions on German VAT group requirements

• ECJ C-269/20 (Finanzamt T) – Judgment – Controlling company may be the only taxable person of a VAT group

• ECJ C-141/20 (Norddeutsche Gesellschaft für Diakonie mbH) – Judgment – VAT group: Controlling member may be the only representative of a VAT group
• ECJ C-596/21 (Finanzamt M) – Judgment – Right to deduct VAT in case of Tax Evasion in a prior transaction

• Flashback on ECJ cases C-442/01 (KapHag) – A partnership that takes on a new partner against payment of a cash contribution does not provide a service for consideration.

• Flashback on ECJ cases C-321/02 (Harbs) – Common flat-rate scheme for farmers

• Flashback on ECJ Cases – C-511/10 (BLC Baumarkt) – Germany may apply surface ratio for mixed-use VAT deduction

• Comment on the ECJ judgment of September 8, 2022, C-368/21 (Hamburg Main Customs Office)

• Flashback on ECJ Cases – C-421/10 (Stoppelkamp) – “A taxable person is established abroad” if the place where he has established his business is abroad

• Flashback on ECJ Cases C-58/04 (Köhler) – Cruise ships, meaning of ‘stop in a third territory’

• Flashback on ECJ cases C-144/00 (Hoffmann) – The expression ‘other cultural institutions which are recognised’ includes soloists performing individually

• ECJ C-344/22 (Gemeinde A)- Questions – Municipality “spa tax” economic activity/taxable person?

• Place of import of transport vehicle and payment of import VAT

• ECJ: No input VAT recovery for management holding company

E-Commerce/Electronic Services

• BFH: Scope of human involvement in electronically provided services

• Influencers – under scrutiny of the tax authorities

E-Invoicing

• Germany: Introduction to the B2B Electronic Invoice

• Special announcement: E-invoicing obligation for B2B in Germany?

• New E-Invoicing obligation: How realistic are the BStBK proposals for a taxonomy with standards like EDIFACT?

• Germany requests permission from European Commission to introduce mandatory B2B e-invoicing

• Germany takes a step forward to implement mandatory e-invoicing

• Germany requests EU derogation (permission) to mandate countrywide B2B e-invoicing

• VAT in the Digital Age: E-Invoicing is coming, ZM is going

• Germany has formally asked European Commission for a derogation to introduce mandatory e-invoicing

• Germany: E-invoicing and E-reporting developments and news

• No schedule for VAT real time reporting system

• No timetable for a E-invoicing/E-Reporting system

• Coalition Government Plans Mandatory E-Invoicing for Germany

• Northern Europe Continuous Transaction Controls Update (DE, DK, SE, LV)

Environmental Tax

• Germany introduces a new special levy for products made of single-use plastic

• German Government releases draft legislation for a Single-Use Plastics levy in Germany

• What is EPR and how does it work? Obligations in France and Germany

Excise

• Germany Extends Reduced VAT Rate for Restaurant and Catering Services

• Government approves extension of excise tax exemption for plug-in electric vehicles

Exemption

• Germany MOF Clarifies Taxation of Therapeutic Medicines

• VAT benefits based on the additional agreement to the NATO troop statute; New edition of the list of official procurement bodies
• VAT exemption according to § 4 No. 14 letters a and b UStG; delivery of medication

• Certificate for VAT purposes in processing and handling cases

• ECJ C-516/21 (Finanzamt X) – AG Opinion – Exemption for Leasing of immovable property including equipment and machinery

• Dance courses are subject to VAT

• VAT exemption for supervision services

• Case of June 22, 2022, XI R 32/21 (XI R 6/19) VAT exemption for supervision services

• VAT benefits due to the additional agreement to the NATO troop statute

• VAT rate for transactions with silver coins

• VAT benefits based on the additional agreement to the NATO troop statute; Modification of the list of official procurement bodies of the Dutch Armed Forces

• Relationships in tri-party contracts and VAT exemption in the case of an actus contrarius

• Guidance: Input VAT deduction for mixed activities (pro rata)

• Supreme Tax Court: Knowledge test for prospective taxi drivers exempt from VAT

• VAT exempt medical treatment within a therapeutic continuum

• Property rented without meeting the conditions for taxable lease

• Supreme Tax Court confirms different VAT treatment of online gambling and physical (offline) gambling

• Operation of slot machines still subject to VAT

• Proof for VAT exemptions pursuant to sec. 4 no. 7 of the German VAT Act for supplies to special institutions

• Storage of frozen oocytes as VAT-exempt medical treatment

• Flashback on ECJ cases C-144/00 (Hoffmann) – The expression ‘other cultural institutions which are recognised’ includes soloists performing individually

• Update On VAT Exemption For Venture Capital Funds

• No exemption for freelance nursing staff?

• BMF comments on VAT exemption for services in connection with the common security and defense policy of the Union and publishes new templates

Export

• Certificate for VAT purposes in processing and handling cases

• Technical changes in ATLAS-Export/ATLAS-Import

• Use of the country name “Türkiye” instead of “Turkey” on proofs of origin and movement certificates

Fixed Establishment

• VAT alert Germany for foreign real estate investors

Flat Rate Schemes

• VAT 2023: Important changes at a glance (2nd update)

Fraud/Tax Evasion

• Refusal to deduct input tax in the event of bad faith on the part of the purchaser

• ECJ: Refusal of the right of input VAT deduction not limited to tax loss (C-596/21 – Finanzamt M)

• Influencers – under scrutiny of the tax authorities

Invoice

• ECJ: No VAT liability results from showing VAT on invoices to final consumers (C-378/21 – P GmbH)

• Federal Fiscal Court about Invoice without correct VAT

• German Federal Fiscal Court: Invoice without correct VAT amount cannot be amended with retroactive effect

• No input VAT deduction if original invoice is amended to add the missing VAT amount
• Property rented without meeting the conditions for taxable lease

Importation

• Use of the country name “Türkiye” instead of “Turkey” on proofs of origin and movement certificates
• Comment on the ECJ judgment of September 8, 2022, C-368/21 (Hamburg Main Customs Office)
• Place of import of transport vehicle and payment of import VAT

Intra-Community Transactions

• Certificate for VAT purposes in processing and handling cases
• VAT 2023: Important changes at a glance (2nd update)

• VAT 2023: Important changes at a glance

• Sixth Regulation on the Amendment of Tax Regulations: Proof intra-EU supplies, Refunds, OSS

• Sixth Regulation on the Amendment of Tax Regulations (Proof IC Supply & Refund, OSS)

Liability (Reverse Charge/Withholding)

• Flashback on ECJ Cases – C-421/10 (Stoppelkamp) – “A taxable person is established abroad” if the place where he has established his business is abroad

Legislative Change

• German Government releases draft legislation for a Single-Use Plastics levy in Germany

Margin Scheme

• Flashback on ECJ cases C-321/02 (Harbs) – Common flat-rate scheme for farmers

One Stop Shop

• Sixth Regulation on the Amendment of Tax Regulations: Proof intra-EU supplies, Refunds, OSS
• Sixth Regulation on the Amendment of Tax Regulations (Proof IC Supply & Refund, OSS)

Place of Supply

• Comment on the ECJ judgment of September 8, 2022, C-368/21 (Hamburg Main Customs Office)
• Place of import of transport vehicle and payment of import VAT

Private Use

• Court ruling on taxation of vehicles given to employees for private use

Quick Fixes

• VAT 2023: Important changes at a glance (2nd update)

Place of Supply

• Cross-border architectural services & VAT

• Flashback on ECJ Cases – C-421/10 (Stoppelkamp) – “A taxable person is established abroad” if the place where he has established his business is abroad
• Flashback on ECJ Cases C-58/04 (Köhler) – Cruise ships, meaning of ‘stop in a third territory’

• Entrepreneurship of a Ltd and residency

Rate

• Germany MOF Further Extends for VAT on Travel Services in Non-EU Countries Due to Coronavirus

• EU VAT Cuts on Fuel and Energy to Combat Inflation Rate

• FAQ “VAT measures to promote the expansion of photovoltaic systems”

• FAQ “VAT measures to promote the expansion of photovoltaic systems”

• VAT 2023: Important changes at a glance (2nd update)

• Reduced VAT rate for collector coins

• VAT 2023: Important changes at a glance

• Vattenfall must report electricity prices with the applicable VAT rate

• VAT benefits due to the additional agreement to the NATO troop statute

• VAT benefits based on the additional agreement to the NATO troop statute; Modification of the list of official procurement bodies of the Dutch Armed Forces

• Reduced VAT rate for restaurant and catering services: Extension of the time scope until December 31, 2023

• Germany Extends Reduced VAT Rate for Restaurant and Catering Services

• BMF: Tax rate for transactions with silver coins

• BFH: Limits of the retroactive effect of an invoice correction

• Germany Reduces VAT Rate for Natural Gas

• Funeral speaker – art of the last moment?

• Germany rolls over hospitality VAT rate cut to 31 Dec 2023

• Annual Tax Act 2022 (draft): Zero VAT rate on photovoltaic systems

• VAT rate for transactions with silver coins

• Monthly updated overview of VAT exchange rates for 2022

• Draft legislation for 2022 Annual Tax Act – Zero VAT for photovoltaic systems

• Bundestag approves VAT reduction on gas and district heating

• VAT reduction now also for district heating

• Draft legislation for 2022 Annual Tax Act

• Reduced VAT rate for gastronomy also in 2023

• German Federal Cabinet Approves Legislation to Reduce VAT on Natural Gas

• Federal Cabinet introduces Finance Act 2022 and Bill for a temporary reduction in VAT on gas supplies

• Government declares reduction of the VAT rate on natural gas until March 2024

Real Estate/Immovable Property

• Cross-border architectural services & VAT
• Property rented without meeting the conditions for taxable lease

• Input VAT apportionment for mixed-use properties

• Rental of a luxury property between a GmbH and a person close to it

• Input VAT allocation according to § 15 paragraph 4 VAT Act (UStG) for mixed-use properties
• VAT alert Germany for foreign real estate investors

Real Time Reporting/Continuous Transaction Controls

• Germany takes a step forward to implement mandatory e-invoicing
• VAT in the Digital Age: E-Invoicing is coming, ZM is going
• Germany: E-invoicing and E-reporting developments and news
• No schedule for VAT real time reporting system
• No timetable for a E-invoicing/E-Reporting system

• Northern Europe Continuous Transaction Controls Update

Refund

• ECJ: No VAT liability results from showing VAT on invoices to final consumers (C-378/21 – P GmbH)

• VAT benefits based on the additional agreement to the NATO troop statute; New edition of the list of official procurement bodies

• VAT benefits due to the additional agreement to the NATO troop statute
• VAT benefits based on the additional agreement to the NATO troop statute; Modification of the list of official procurement bodies of the Dutch Armed Forces

• New certificate of VAT taxable status

• Sixth Regulation on the Amendment of Tax Regulations: Proof intra-EU supplies, Refunds, OSS

• German input VAT deduction for companies established outside of the European Union

• Sixth Regulation on the Amendment of Tax Regulations (Proof IC Supply & Refund, OSS)
• BFH to voluntarily pay an advance payment of VAT from the previous year before it is due within the short period of time

Registration

• New certificate of VAT taxable status

Reporting/Compliance

• VAT 2023: Important changes at a glance

• Annual VAT returns: new deadlines and interest rules

• Draft legislation for 2022 Annual Tax Act

Taxable Amount

• Monthly updated overview of VAT exchange rates for 2022

• German Federal Fiscal Court on customs valuation: Retroactive transfer price adjustments not to be taken into account (Hamamatsu decision)
• Appeal in “Hamamatsu” case rejected by German Federal Court
• Customs valuation for cross-border transactions between affiliated companies in the EU
• Hamamatsu’s final judgment finally delivered. Now it’s the turn of the European Commission!
• Determination of customs value in the event of subsequent adjustment of transfer prices
• German Court: A downward TP adjustment does not entitle Hamamatsu for a refund of import duties

Tax Authorities/Penalties

• VAT Application Decree; Changes as of December 31, 2022 (incorporation of case law and editorial changes)

• VAT Application Decree – Consolidated Version (as of November 22, 2022)

Taxable Person

• ECJ C-269/20 (Finanzamt T) – Judgment – Controlling company may be the only taxable person of a VAT group
• ECJ C-141/20 (Norddeutsche Gesellschaft für Diakonie mbH) – Judgment – VAT group: Controlling member may be the only representative of a VAT group
• New certificate of VAT taxable status

• BFH on the liability of the Controlled Company in a VAT group

• Entrepreneurship of a British LTD and its residency

• ECJ C-344/22 (Gemeinde A)- Questions – Municipality “spa tax” economic activity/taxable person?

• Construction works in terms of VAT and construction withholding tax according to the Ministry of Finance

Tax Point (When the Chargeable Event Occurs)

• Federal Fiscal Court: Partial performance only for services with continous or recurring character, one-off services excluded

Taxable Transaction

• No input VAT deduction for sale and buy-back
• ECJ C-596/21 (Finanzamt M) – Judgment – Right to deduct VAT in case of Tax Evasion in a prior transaction
• Flashback on ECJ cases C-442/01 (KapHag) – A partnership that takes on a new partner against payment of a cash contribution does not provide a service for consideration.

• No taxable supplies in case of symbolic consideration

• BFH: Transfer of vehicle to staff for private purposes as a transaction similar to an exchange

• Rental of a luxury property between a GmbH and a person close to it

• Germany plans to legalise recreational cannabis – VAT and “cannabis tax” due

• Concept of immovable property in VAT and income tax is not congruent

• ECJ C-344/22 (Gemeinde A)- Questions – Municipality “spa tax” economic activity/taxable person?

• VAT trap chartering of sailing or motor boats

• Construction works in terms of VAT and construction withholding tax according to the Ministry of Finance

Territory

• Entrepreneurship of a Ltd and residency

TOMS (Tour Operators Margin Scheme)

• Germany defers new VAT rules again

• The State of TOMS 2022

• German VAT proposal threatens to make country ‘toxic’

Triangulation

• Triangular transactions despite existing registration in the country of destination

VAT Group

• Potential for structuring: VAT group also includes non-economic activities

• German VAT group rules – ECJ rulings
• Comments on ECJ C-141/20: ECJ with two landmark decisions on German VAT group requirements
• ECJ C-269/20 (Finanzamt T) – Judgment – Controlling company may be the only taxable person of a VAT group

• ECJ C-141/20 (Norddeutsche Gesellschaft für Diakonie mbH) – Judgment – VAT group: Controlling member may be the only representative of a VAT group

• No VAT group between sister companies

• BFH on the liability of the Controlled Company in a VAT group

• VAT and tax code: BFH on the liability of the controlled company in the VAT group

VAT Identification Number

• New tax identification number called Wirtschafts-Identifikationsnummer (W-IdNr) in Germany

Vouchers

• Federal Fiscal Court: transfer of vouchers in distribution chains