In the eigth part of our KMLZ newsletter series on the Annual VAT Act 2020 we comment on the extension of the OSS-procedure applicable for all supply of services to non-taxable persons. In particular we explain the effect of OSS to cross-border passenger transportation services and other changes in this context. The simplification rules, as laid down in sec. 5 of the German VAT Implementation Code, are to be abolished. Consequently, as of 1 January 2021, short distances of up to 10 kilometers travelled in Germany will be subject to German VAT. This will result in an additional administrative burden being placed on providers of cross-border passenger transportation.
Source: kmlz.de
