5 Major Developments in Germany

5 Major Developments in Germany

• Proposal issued to allow derogation to Germany for B2B e-invoicing

• Upper limit of livestock units in the tax group when applying taxation according to average rates i. S.v. § 24 VAT Act

• Input tax deduction from the grant (invoice of the canteen operator)

• Federal Ministry of Finance’s letter on the VAT treatment of marketing fees and preliminary costs

• Relief effect of VAT reduction on gas deliveries

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Bad Debts (Relief for Underpaid Sales Invoices)

• VAT Insolvency Law – Subsequent Liability of the Taxable Person for VAT Debts

Composite Supply

• Lease of operating equipment ancillary to VAT-exempt lease of property, other VAT developments

Customs

• Guidance: How to return from vacation “duty-free”

• Munich court rules that a year-end TP adjustment does not justify additional import duties

• Munich – Customs Valuation and Transfer Pricing Year-End Adjustments

• Transfer of goods with exemption from import VAT

• Definition of importer in customs declarations on importation

Deduction (Input Tax Credit)

• Input tax deduction from the grant (invoice of the canteen operator)

• Input VAT deduction from employer subsidies for canteen management

• Rejection of input VAT deduction in the case of fraudulent goods in a supply chain

• Photovoltaic system: Input VAT deduction from repair costs to roof

• VAT liability for unduly charged VAT also possible when negative VAT amounts are shown

• Flashback on ECJ cases C-25/03 (HE) – Purchase of a house, of which one room is an office, is an economic activity

• ECJ C-83/23 (H GmbH) – Questions – Refund of VAT wrongly charged to the buyer in case supplier initiated insolvency proceedings

• Judgement: Photovoltaic system – Input VAT deduction from repair costs for house roof

E-Commerce / Electronic Services

• Businesses using OSS may receive payment reminders from other EU Member States.

E-invoicing

• European Commission backs plans to implement B2B e-invoicing mandate in Romania and Germany

• Proposal issued to allow derogation to Germany for B2B e-invoicing

• Proposal For B2B E-Invoicing Mandate In Germany 2025

• Germany: EU approval for mandatory e-invoicing deviation to enhance tax administration

• Deutscher Steuerberaterverband e.V feedback to eInvoicing in Europe

• Germany: B2B Electronic Invoicing

• Introduction of B2B Electronic Invoicing planned for 2025

• Germany: European Commission gives green light to mandatory e-invoicing for domestic B2B transactions

• Public consultation on mandatory domestic B2B e-Invoicing

• Country fact sheets: eInvoicing in Germany

• Germany obtained a decision proposal on introducing e-invoicing obligation from January 2025

• Germany B2B Real-Time E-Invoicing January 2025 Update

• Proposal to allow Germany to introduce a special measure derogating from Articles 218 and 232 (e-invoicing)

• Germany’s E-invoicing and E-reporting Mandate

• E-invoicing obligation from 2025 in the B2B sector?

• Mandatory e-invoice and new reporting system for B2B sales

• EESPA endorses the VeR position towards the German e-invoicing plans

• Electronic invoice in Germany, compulsory from 2025

• Is Germany the next EU state to mandate B2B electronic invoicing?

• Mandatory B2B Transactions in Germany

• E-Invoicing mandates and updates: Germany

• Germany: Introduction of B2B Electronic Invoicing

• Exchange Summit: E-Rechnungs-Gipfel Berlin (June 12 & 13)

• Germany will mandate e-invoicing for all companies in 2025

• E-Invoicing: The introduction of e-billing in Germany is planned for January 1st, 2025

• Sovos webinar- Recorded sesssion – VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany? (April 27)

• Exchange Summit: E-Rechnungs-Gipfel Berlin (June 12 & 13)

• Sovos webinar – Recorded version – VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany?

• Germany Launches Private Consultation about the Introduction of Mandatory E-Invoicing

• Mandatory B2B Invoicing in Germany Coming Soon

• BMF Launches Private Consultation about the Introduction of Mandatory E-Invoicing

• Sovos webinar: VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany? (April 27)

• Consultation on implementation of B2B e-invoicing requirement effective 2025

• BMF issued discussion document for mandatory eInvoicing

• Germany Steps Closer to Introducing Continuous Transaction Controls

• E-invoice: BMF submits discussion draft, associations can comment

• Germany plans to introduce B2B e-invoicing by 2025

• Update on mandatory e-invoicing in Germany for B2B domestic transactions

• Get yourself familiar with E-Invoicing in Germany: XRechnung, ZUGFeRD, Factur X, ZRE

• Update on mandatory e-invoicing in Germany for B2B domestic transactions

• Mandatory e-invoices for domestic B2B sales planned in Germany from 2025

• German Finance Ministry releases discussion draft on pending introduction of e-invoice

• B2B e-invoicing January 2025 update

• Discussion draft for the introduction of e-invoicing

• Sovos webinar: VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany? (April 27)

• BMF released the draft paper for discussion on the introduction of mandatory e-invoicing in Germany

• Sovos webinar: VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany? (April 27)

ECJ (European Court of Justice)

• Flashback on ECJ Cases – C-433/08 (Yaesu Europe) – Signature of authorized representative is sufficient in a request for refund

• Flashback on ECJ Cases – C-442/05 (Zweckverband …. ) – Terms “supply of water” and “water distribution” respectively – Reduced VAT rate

• ECJ C-207/23 (Finanzamt X) – Questions – Heat supplied free of charge to another company

• ECJ C-184/23 (Finanzamt T) – Questions – Are supplies within VAT group outside scope of VAT if input VAT is limited?

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

• Question sent to ECJ – VAT treatment of heat supplied from a biogas facility

• Flashback on ECJ Cases C-43/04 (Stadt Sundern) – The concept of “agricultural service” includes any service supplied by a farmer

• Flashback on ECJ cases C-25/03 (HE) – Purchase of a house, of which one room is an office, is an economic activity
• ECJ C-83/23 (H GmbH) – Questions – Refund of VAT wrongly charged to the buyer in case supplier initiated insolvency proceedings
• Flashback on ECJ Cases – C-408/06 (Götz) – The activity of transferring delivery reference quantities for remuneration, carried out by milk-quota sales points, constitutes an economic activity

Environmental Tax

• German Federal Administrative Court confirms legality of local packaging tax in city of Tübingen

• Germany to implement Single-Use Plastics levy from 2024, extending scope to certain fireworks from 2027

• Plastic tax now also in Germany – EWKFondsG (Single-use Plastic Funds Act)

• Federal Council approves special levy for single-use plastics

Exemption

• VAT treatment of services by debtor advisor – exempt?

• Tax registration of operators of certain small photovoltaic systems

• Real Estate & Leases – VATable or not?

• Federal Ministry of Finance guidance: Definition of investment gold

• Lease of operating equipment ancillary to VAT-exempt lease of property, other VAT developments
• KPMG Week in Tax: 29 May – 2 June 2023

• VAT benefits NATO Troops Statute – Simplified Procedure for NATO Headquarters

• VAT exemption for services provided by procedural counsel

• Updated list of NATO Headquarters

• VAT-free sales for aviation (§ 4 No. 2, § 8 Para. 2 UStG; Section 8.2 UStAE)

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

• Federal Fiscal Court: VAT exemption of the services of procedural counsel

• VAT benefits based on the supplementary agreement to the protocol on the NATO headquarters and sales tax exemption according to § 4 number 7 sentence 1 letter d sales tax law (UStG)

• Proposed Extension Of VAT Exemption For Management Of All Alternative Investment Funds (AIFs)

Flat Rate Schemes

• Flashback on ECJ Cases C-43/04 (Stadt Sundern) – The concept of “agricultural service” includes any service supplied by a farmer

Fraud / Tax Evasion

• Rejection of input VAT deduction in the case of fraudulent goods in a supply chain

Importation

• Guidance: How to return from vacation “duty-free”

• Economy calls for simplification of tax procedures for import VAT

• Transfer of goods with exemption from import VAT
• Definition of importer in customs declarations on importation

Intra-Community Transactions

• Ministry of Finance letter on chain transactions – particularly on assignment of the transport and communication of the VAT-ID

Invoice

• German Ministry of Finance publishes clarification on the VAT treatment of chain transactions

• Flashback on ECJ cases C-25/03 (HE) – Purchase of a house, of which one room is an office, is an economic activity
• ECJ C-83/23 (H GmbH) – Questions – Refund of VAT wrongly charged to the buyer in case supplier initiated insolvency proceedings

Liability (Reverse Charge/Withholding)

• Reverse Charge in Germany

• BMF: Tax liability according to § 14c UStG also possible if negative sales tax amounts are reported – VATupdate

One Stop Shop

• OSS: German Tax Office Advises One-Stop-Shop Entrepreneurs on Payment Reminders from Other EU Member States

Place of Supply

• Financing brokerage as (not) property-related service

• BMF guidance on chain transactions

Private Use

• Input VAT deduction from employer subsidies for canteen management

Rate

• Upper limit of livestock units in the tax group when applying taxation according to average rates i. S.v. § 24 VAT Act

• Tax registration of operators of certain small photovoltaic systems

• Relief effect of VAT reduction on gas deliveries

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

• Flashback on ECJ Cases – C-442/05 (Zweckverband …. ) – Terms “supply of water” and “water distribution” respectively – Reduced VAT rate

• Federal Ministry of Finance guidance: Definition of investment gold

• Federal Fiscal Court: Reduced VAT rate for food with promotional packaging

• Supplies of gas via the natural gas network and heat via a heat network

• VAT on a dinner show

• BMF: VAT rate for the supply of woodchips

• Supply and installation of photovoltaic systems now zero-rated

Real Estate/Immovable Property

• Financing brokerage as (not) property-related service
• Real Estate & Leases – VATable or not?

• Updated guidance published on RETT intragroup restructuring exemption

• KPMG Week in Tax: 29 May – 2 June 2023

• Judgement: Photovoltaic system – Input VAT deduction from repair costs for house roof

Real Time Reporting/Continuous Transaction Controls

• Germany: EU approval for mandatory e-invoicing deviation to enhance tax administration

• Proposal to allow Germany to introduce a special measure derogating from Articles 218 and 232 (e-invoicing)

• Germany’s E-invoicing and E-reporting Mandate

• Proposal for a Council Implementing Decision authorising Germany to introduce E-Invoicing

• E-invoicing obligation from 2025 in the B2B sector?
• Germany Steps Closer to Introducing Continuous Transaction Controls

Refund

• Flashback on ECJ Cases – C-433/08 (Yaesu Europe) – Signature of authorized representative is sufficient in a request for refund
• ECJ C-83/23 (H GmbH) – Questions – Refund of VAT wrongly charged to the buyer in case supplier initiated insolvency proceedings

Registration

• Foreign sales of fuel under fuel card contract – VAT rules and obligation to register abroad

Reporting / Compliance

• The Official Value Added Tax (VAT) Manual 2021 is now available online

• EY VAT News – 5 June 2023

• German Federal Ministry of Finance (BMF) letter clarifying special VAT regulations for local authorities (Gebietskörperschaften)

• Businesses using OSS may receive payment reminders from other EU Member States.

• Extremely short deadline to file my VAT returns?

• BMF: Tax liability according to § 14c UStG also possible if negative sales tax amounts are reported

Supply of Goods

• VAT treatment of chain transactions

• Ministry of Finance letter on chain transactions – particularly on assignment of the transport and communication of the VAT-ID

Taxable Amount

• Monthly updated overview of VAT exchange rates for 2023

• Munich – Customs Valuation and Transfer Pricing Year-End Adjustments
• ECJ C-207/23 (Finanzamt X) – Questions – Heat supplied free of charge to another company
• Question sent to ECJ – VAT treatment of heat supplied from a biogas facility

• VAT liability for unduly charged VAT also possible when negative VAT amounts are shown

Taxable Person

• Flashback on ECJ Cases – C-442/05 (Zweckverband …. ) – Terms “supply of water” and “water distribution” respectively – Reduced VAT rate
• Flashback on ECJ cases C-25/03 (HE) – Purchase of a house, of which one room is an office, is an economic activity
• Flashback on ECJ Cases – C-408/06 (Götz) – The activity of transferring delivery reference quantities for remuneration, carried out by milk-quota sales points, constitutes an economic activity

Taxable Transaction

• Federal Ministry of Finance’s letter on the VAT treatment of marketing fees and preliminary costs

• BMF: VAT treatment of advance costs for supply of livestock to slaughterhouses and marketing fees of producer organizations in the fruit and vegetable sector

• ECJ C-207/23 (Finanzamt X) – Questions – Heat supplied free of charge to another company
• Foreign sales of fuel under fuel card contract – VAT rules and obligation to register abroad

• VAT in the case of private use of electric vehicles & Co.

• Question sent to ECJ – VAT treatment of heat supplied from a biogas facility

• Flashback on ECJ Cases – C-408/06 (Götz) – The activity of transferring delivery reference quantities for remuneration, carried out by milk-quota sales points, constitutes an economic activity

Tax Authorities / Penalties

• Tax consultants obliged to actively use the special electronic tax consultant mailbox (beSt) since January 1st, 2023

Transfer Pricing

• Munich court rules that a year-end TP adjustment does not justify additional import duties

Triangulation

• New Federal Ministry of Finance Circular regarding supply chains

• German Ministry of Finance publishes clarification on the VAT treatment of chain transactions
• BMF guidance on chain transactions

• VAT treatment of chain transactions

VAT Group

• BMF specifies the requirements of the so-called “small VAT group”

• Movement in the VAT group regime

• Requirement for a proposed amendment for the avoidance of opposing VAT determinations in the case of tax groups

• Federal fiscal court rules on limited partnership issues related to VAT groups

• Supreme Tax Court: Two follow-up decisions on VAT group requirements

ViDA

• VAT in the Digital Age – Big Opportunity for Simplification?

• Consultation on implementation of B2B e-invoicing requirement effective 2025

Webinar/Event/Podcast

• Event: E-Invoicing summit in Berlin on June 12th and 13th, 2023

• Event: E-Invoicing summit in Berlin on June 12th and 13th, 2023

• Event: E-Invoicing summit in Berlin on June 12th and 13th, 2023

• Event: E-Invoicing summit in Berlin on June 12th and 13th, 2023

• Sovos webinar- Recorded sesssion – VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany? (April 27)
• Sovos webinar: VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany? (April 27)
• Sovos webinar: VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany? (April 27)
• Sovos webinar: VAT Snapshot: What does the future hold for e-invoicing in Spain, France, KSA and Germany? (April 27)