In the tenth part of our newsletter series on the Annual Tax Act 2020 we focus on the implementation of the reverse charge mechanism on the supply of telecommunication services (= TC supplies), as intended by the legislator. By taking these steps, the legislator intends to curb fraud models. However, the new regulation only applies to TC supplies rendered to a taxable person who himself is a reseller of TC supplies. Companies that buy and/or sell TC supplies must adapt their internal processes and systems accordingly, for both purchases and sales. Meanwhile, a number of unresolved questions and considerable difficulties in application are emerging. The legislator would do well to rework and improve the regulation.
Source: kmlz.de
