5 Major Developments in Germany

5 Major Developments

• German public entities might adopt countrywide Peppol in 2023
• German Federal Ministry of Finance publishes draft DAC7 implementation bill
• Deadline Extension for the 2021 Annual VAT Returns to 31 October 2022
• BFH rules on conditions for a German PE due to service provider activities
• Germany slashes VAT on gas to 7% following EU block

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E-Invoicing

• Electronic invoices to federal, state and local authorities

• Another Land with B2G Duty in Germany

• German public entities might adopt countrywide Peppol in 2023

DAC7

• Draft law on due diligence and reporting obligations for digital platform operators (DAC7)

• German Federal Ministry of Finance publishes draft DAC7 implementation bill

• Government Releases the obligations for EU Digital Platform Operators

• DAC7 Reporting Obligations

• MOF publishes DAC 7 draft implementation bill

• Which reporting obligations will be introduced for online platforms?

• Government draft of a law for the implementation of “DAC 7”

Environmental Tax

• Plastics and Packaging Laws in Germany

Reporting/Compliance

• The annual VAT return deadline is approaching in Germany

• Deadline Extension for the 2021 Annual VAT Returns to 31 October 2022

• Extended deadlines on Annual VAT returns 2020 to 2025 in Germany

Customs

• Waiver of customs debt and import VAT when repairing a sailing boat from Switzerland in Germany

• Waiver of customs debt and import VAT for sailboat repairs

Excise

• End of the fuel tax reductions as of Sept 1, 2022

Registration

• What is considered under the VAT ID number in Germany?

Liability (reverse charge/withholding)

• VAT treatment of GHG quota trading

Exemption

• Exemption does not cover tennis lessons given for leisure purposes

• VAT Exemption on intra-EU supplies

• BMF: Exemption of supplies from an independent partnership to its members

• German finance minister writes to Brussels over VAT exemption for gas levy

• Germany awaiting response from Brussels on VAT exemption for gas levy

• Germany seeks EU Commission approval to cut VAT on Gas Levy

• Services of a hygiene specialist not subject to VAT

• VAT treatment of a card deposit collected when electronic payment cards are provided

Tax Authorities/Penalties

• Update – Germany Enacts Law to Comply with Court Decision on Interest Rates

Taxable Amount

• Monthly updated overview of VAT exchange rates for 2022

Rate

• VAT reduction not provided for in the coalition agreement

• Germany considers cutting VAT on Gas Levy

• BFH: Significance of the principal of neutrality for VAT rate reductions

• BMF: Reduced VAT rate for supplies of a charitable organization

• Germany slashes VAT on gas to 7% following EU block

• Germany lowers VAT on gas to relieve consumers

• Temporarily Cutting VAT Rate on Natural Gas

• The reduced VAT rate for restaurants and the catering industry ends in 2023

• Germany’s Third Relief Package to Mitigate Impact of Rising Energy Prices Includes Minimum Tax

• Germany rolls over hospitality VAT rate cut to 7% into 2023

• Draft law to temporarily reduce the VAT rate on gas deliveries via the natural gas network

Input Tax Credit

• BFH: Documentation of the assignment of an item to a company

• Input VAT adjustment pursuant to Section 15a UStG in case of abandonment of only one of several activities

Refund

• CJEU submission on the reach of the so-called “Reemtsma claim”

Place of Supply

• Place of supply for boat excursions on the river Moselle

Fraud/Tax Evasion

• Proposed changes to VAT recording and reporting

Permanent Establishment

• BFH rules on conditions for a German PE due to service provider activities

SME (Small and medium-sized enterprises)

• Application of the small business regulation for entrepreneurs domiciled abroad

Real Estate/Immovable Property

• Contracts between close relatives

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