- The CJEU ruling essentially concerned the conditions for the application of the Bulgarian small business regulation in connection with the registration obligations and sanction options applicable there.
- From 1 January 2025, the small business regulation is to be revised in the EU and thus also in Germany (JStG 2024, see note at the end of the newsletter). Until now, only entrepreneurs based in Germany were able to make use of the small business regulation of 19 UStG in Germany. The new regulation makes it possible for entrepreneurs based in the rest of the Community to also apply the small business regulation in Germany. A special notification procedure will be introduced so that entrepreneurs based in Germany can claim the tax exemption in another member state. The Federal Central Tax Office will be responsible for carrying out the notification procedure and the cooperation with other Member States required under EU law. The mandatory implementation of Directive 2020/285/EU of 18 February 2020 is also being used in Germany as an opportunity to redesign the special regulation for small businesses. It remains to be seen how the other member states will implement the new small business regulation.
- According to the new version of § 19 (4) UStG planned from 1 January 2025, an entrepreneur established in the rest of the Community whose annual turnover in the Community did not exceed the threshold of EUR 100,000 in the previous calendar year as stipulated by EU law and does not exceed this threshold in the current calendar year can also make use of the small business regulation in accordance with paragraph 1 for their domestic (in Germany) transactions. The prerequisite for this is that his domestic turnover is below the amounts specified in § 19 (1) sentence 1 UStG (new version) and that he has been issued or confirmed a valid identification number for small businesses for the tax exemption in Germany by his country of residence. The country of residence is responsible for checking the annual turnover in the Community. If the annual turnover in the Community territory exceeds EUR 100,000, the tax exemption will no longer apply from this point in time.
Source KPMG
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
