Annual Tax Act 2020 (Part 7): Implementation of a decentralised taxation procedure for federal and state governments

This is the 7th part of our Newsletter series on the Annual Tax Act 2020. Today, we will focus on the legislator’s intended implementation of a so-called decentralised taxation procedure for federal and state authorities. The tax authorities already allow individual dependent organisational units of the federal and state governments to be treated as taxable persons. However, a legal basis for this does not yet exist. Such a legal basis is now to be established, so that the individual organisational units may exercise all rights and obligations under VAT law after the option period has expired. This represents a simplification. However, many questions remain open.

Source: kmlz.de

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