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Digital VAT package and distance sales proposals; other VAT developments

The German cabinet in early September 2020 agreed to the government’s draft proposal for the annual tax law for 2020, including measures for a draft value added tax (VAT) package for digital taxation. The digital VAT package includes measures to expand the threshold value of €10,000—the amount by which telecommunications services, radio and television services, and services provided electronically would continue to be subject to VAT in the EU Member State of residence of the person providing the supply.

Source KPMG

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