Germany – Legislative changes to VAT | KPMG | GLOBAL.
December 17: The German Parliament (Budestag) on 4 December 2014 passed legislation to amend the rules relating to value added tax (VAT).
The pending law provides for―among other things―the following VAT changes:
- Introduction of a “quick reaction” mechanism to enlarge the reverse charge mechanism
- Monthly filing of preliminary VAT returns when “shell companies” are involved
- Revised rules regarding the location of telecommunication services, radio and television services and electronically supplied services to customers not liable to VAT, effective 1 January 2015
- Expansion of VAT exemption for hospital and medical care to institutions that have concluded contracts for supplying non-physician dialysis services
- New rules for basic certificates issued for VAT-exempt cultural services by non-tax departments
- Extension of rules regarding the place of supply applicable to specific banking and insurance transactions (e.g., portfolio management services) with regard to the recipients of the supply located in a non-EU Member State
- Limited extension of the tax liability for the recipient of supplies for mobile devices
- Limitation of the reverse charge mechanism with regard to taxable natural gas supplies provided in Germany when the recipient is a retailer
Read a December 2014 report [PDF KB] prepared by the KPMG member firm in Germany: MwST. VAT Newsletter (December 2014)