In sec. 2.2 para. 2 sentence 7 of the German VAT Circular (UStAE), the Federal Ministry of Finance (BMF) has so far assumed that a member of a supervisory board performs his or her activities on a self-employed basis. In its latest letter dated July 8, 2021, the BMF has now changed its view. In doing so it has adopted the latest case law of the ECJ and BFH. Accordingly, a supervisory board member is now not considered to be self-employed if he or she receives a fixed remuneration or a remuneration whose variable component does not reach ten percent of the total remuneration. These principles also apply to members of other supervisory bodies, but not to members of management bodies. The new regulation is to be applied to all open cases. However, the Ministry has granted a transitional phase until December 31, 2021.
Source: kmlz.de
Latest Posts in "Germany"
- German Court Clarifies VAT Deduction and Supply Rules for Advertising Services to Foreign Companies
- Germany Clarifies VAT Exemption Rules for Pre-Import Supplies of Goods
- Internal Transactions in VAT Groups: Non-Taxability Extended to Non-Economic Activities per BMF Guidance
- Input Tax Deduction: New Rules for Changes in Use Between Business and Non-Business Activities
- BMF Updates VAT Rules: New Approach for Input Tax and Organschaft in Public Sector Activities
