- The Annual Tax Act 2024 introduces significant VAT changes for coin dealers, art dealers, antique dealers, and gallery owners starting January 1, 2025.
- Key changes include modifications to the margin scheme under sec. 25a of the German VAT Act (UStG) and the reintroduction of a reduced VAT rate for works of art and collectors’ items.
- Three main changes to the margin scheme are outlined: 1. **Editorial Clarification**: The margin scheme can be applied if the supplier does not owe VAT to the reseller or if the supplier qualifies as a small business under sec. 19 UStG, leading to VAT exemption for small enterprises. 2. **Exclusion of Margin Scheme**: The margin scheme will be excluded if a reduced VAT rate was applied to goods supplied by the reseller, particularly affecting goods imported from third countries. 3. **Removal of Customs Tariff Number**: An editorial change regarding customs tariff number 7118, which does not fundamentally alter the margin scheme.
- The second change significantly impacts coin dealers, as they will face double penalties in cases involving third-country imports.
- Domestic and EU transactions remain unaffected, allowing continued application of the margin scheme in those cases.
Source: kmlz.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
