5 Major Developments in Germany

5 Major Developments in Germany

• VAT rate on deliveries of wood chips
• GoB: Principles of proper accounting and GoDB
• Recently introduced VAT rate of 0% for solar panel systems – New federal instructions
• Update German VAT Group
• Bundestag transfers gastro VAT reduction to committees

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Bad debts (relief for underpaid sales invoices)

• Comments on C-482/21 (Euler Hermes): Reduction of the basis for assessment of VAT due to irrecoverable Debts

• VAT for pharmacies and insolvency of the billing service provider

Composite supply

• ECJ C-713/21 (Finanzamt X) – Judgment – Composite supply by owner of a competition horse training stable?

Cryptocurrency and NFT

• Crypto, NFT, Metaverse and Co. – financial administration gears up

Customs

• ATLAS AES 3.0: new mandatory fields in the export declaration

• AEO application as of March 1, 2023

• BFH: Addition of transport costs in the case of outward processing

• FG Munich on the relationship between customs value and transfer prices in subsequent collections – current developments

• Specification of the carrier and his number in the export declaration with AES 3.0

• ECJ Customs C-635/21 (LB GmbH (Air loungers)) – Judgment – Tariff Classification of Air Loungers

• Leaflet on customs declarations published (edition 2023)

DAC7

• BMF letter on the Platform Tax Transparency Act (PStTG – implementation of DAC7)

• Tax authorities publish guidance on DAC 7 implementation law

• Ministry of Finance letter on Platform Tax Transparency Act (PStTG – implementation of DAC7 Directive)

• Ministry of Finance Issues Guidance on DAC7 Implementation Rules

• Ministry of Finance Issues Guidance on DAC7 Implementation Rules

• Tax compliance management: Germany is taking it seriously

• German Law to Implement DAC7

• German Law to Implement DAC7 and Adjust Transfer Pricing Documentation Submission Requirements

• Federal Council passes the DAC7 Implementation Act

Deduction (input tax credit)

• Germany New federal instructions regarding input VAT deductions for research institutions – Unifying the patchwork

• Input tax deduction for middle-class clothing?

• MOF Posts Letter on Temporary Regime Unauthorized VAT Invoices

• VAT status and input tax deduction for research institutions

• German Federal Fiscal Court restricts input VAT deduction for luxury cars

• VAT status and input tax deduction for research institutions

• German Federal Fiscal Court restricts input VAT deduction for luxury cars

• No input VAT deduction upon acquisition of luxury cars

• Input VAT deduction and private use of a car as part of a spouse’s pre-tax model

• Input tax deduction and private use within the framework of a spouse’s preliminary model

• No input tax deduction for middle-class clothing

• Input tax deduction from the purchase of luxury vehicles

Donations

• Customs clearance of aid deliveries and donations in kind to Turkey and Syria

• VAT Exemption for supplies to victims of eartquake in Turkey/Syria

E-Commerce / Electronic Services

• 2022 Annual Tax Act: Obligations for payment service providers and 0% for photovoltaic systems

• VAT Act amended by Annual Tax Act 2022

• 2022 Annual Tax Act: Obligations for payment service providers and 0% for photovoltaic systems

• VAT Act amended by Annual Tax Act 2022

• Tax compliance management: Germany is taking it seriously

E-Invoicing

• Ministry of Finance plans to publish mandatory B2B e-invoicing discussion draft

• Germany Moves Ahead to B2B E-Invoicing

• Electronic invoices for VAT full speed ahead from 2024!

• E-Invoicing in Germany

• E-Invoicing Developments in Northern Europe

• Mandatory e-invoicing update: B2B e-invoicing not coupled CTCs for domestic B2B transactions

• Germany will publish a discussion draft law for the introduction of mandatory B2B e-invoicing

• B2B E-Invoicing – Discussion Paper

• German Federal Ministry of Finance intends to publish a „discussion draft“ for mandatory B2B E-Invoicing

• EU Sustainability Reporting Standards: EFRAG seeks experts to develop an XBRL taxonomy

ECJ (European Court of Justice)

• Flashback on ECJ Cases C-430/04 (Feuerbestattungsverein Halle) – Public bodies are taxable persons in case of competition with private persons

• Supreme Tax Court: Two follow-up decisions on VAT group requirements

• New ECJ VAT case C-184/23: Finanzamt T II vs. DE

• ECJ referral on intra-group supplies / financial integration without majority of voting rights

• New ECJ Referral: BFH is re-referring Norddeutsche Gesellschaft für Diakonie mbH (C-141/20) to the ECJ

• ECJ C-68/23 (Finanzamt O) – Questions – Definition of single-purpose and multi-purpose vouchers – Tax treatment of prepaid cards or vouchers for the purchase of digital contents 

• Federal Fiscal Court: VAT grouping rules in Germany

• Flashback on ECJ Cases C-72/05 (Wollny) – Use of immovable property belonging to a business for private purposes of the taxable person

• ECJ C-180/22 (Mensing) – AG Opinion – VAT paid on intra-EU acquisition to be included in taxable amount under profit margin scheme

• VAT Groups in Germany: ECJ‘s Decision on Their Compliance

• Flashback on ECJ cases C-453/02 (Linneweber) & C-462/02 (Akritidis) – VAT exemption for gambling also applies in the case of unauthorized gambling

• Need for reform in the VAT group: Groundbreaking ECJ judgments

• Comments on C-482/21 (Euler Hermes): Reduction of the basis for assessment of VAT due to irrecoverable Debts

• Flashback on ECJ Cases – C-97/09 (Schmelz) – Refusal of a small business scheme for taxpayers established in other Member States – Concept of “annual turnover”

• ECJ C-791/22 (Hauptzollamt Braunschweig) – Questions – Possibility for the tax authorities in Germany to collect import VAT on untaxed in Poland

• ECJ Customs C-635/21 (LB GmbH (Air loungers)) – Judgment – Tariff Classification of Air Loungers
• ECJ C-713/21 (Finanzamt X) – Judgment – Composite supply by owner of a competition horse training stable?

• Flashback on ECJ Cases – C-453/09 (Commission v Germany) – No reduced VAT rate for live animals/horses

• Flashback on ECJ Cases – C-539/09 (Commission v Germany) – Own resources accruing from value added tax

• Flashback on ECJ Cases – C-31/10 (Minerva Kulturreisen) – TOMS does not apply to the individual sale of opera tickets by a travel agent without a travel service being provided

Environmental Tax

• General Look to Plastic Tax Regulation

• The German Federal Parliament approves the single-use plastics levy

• German Federal Parliament approves Single-Use Plastics levy, Federal Council approval is next step

Excise

• Excise duty: Important changes as from 13 February 2023 due to the 7th Act Amending the Acts On Excise Duties

Exemption

• VAT exemption sales from the accommodation and catering of accompanying persons and the catering of employees; BFH judgment of December 16, 2015, XI R 52/13

• Germany MOF Posts Decision Clarifying VAT Treatment of Telephone Medical Services

• Flashback on ECJ cases C-453/02 (Linneweber) & C-462/02 (Akritidis) – VAT exemption for gambling also applies in the case of unauthorized gambling
• VAT Exemption for supplies to victims of eartquake in Turkey/Syria

• VAT exemption for services closely related to social welfare and social security

• VAT exemption of private hospitals: 40% quota in accordance with Union law?

• German exemption on corrected intra-Community supplies in 2023

• Acquisition of forest land – no real estate transfer tax, but VAT?

Export

• ATLAS AES 3.0: new mandatory fields in the export declaration
• Specification of the carrier and his number in the export declaration with AES 3.0

• BAFA: Update of the Export List

Fiscalization

• Starting from January 1st, 2023, only cash registers with a valid TSE may be used.

Fixed Establishment

• Different countries, different VAT

Fraud / Tax evasion

• Two convicted of VAT fraud in EPPO investigation in Germany – estimated VAT losses of more than €33 million

• Four more convictions and confiscation of €1 million in an EPPO investigation into VAT carousel fraud involving luxury cars

• Input VAT deduction and private use of a car as part of a spouse’s pre-tax model

• First conviction in VAT carousel fraud involving luxury cars

Intra-Community Transactions

• B2B E-Invoicing – Discussion Paper
• German exemption on corrected intra-Community supplies in 2023

Intrastat

• 2023 Intrastat thresholds

• European Union: Various Changes to Forms & Intrastat Thresholds

Invoice

• Letter on a provisional system for handling unauthorized VAT invoices

• Letter on a provisional system for handling unauthorized VAT invoices

• MOF Posts Letter on Temporary Regime Unauthorized VAT Invoices

• Court rules no retroactive correction of invoices for purposes of input VAT deduction

Legal Acts

• 2022 Annual Tax Act

• 2022 Annual Tax Act

Legislative Change

• Update of the VAT decree (UStAE) and repeal of outdated BMF letters

• Further transitional regulation for legal entities under public law

Margin Scheme

• ECJ C-180/22 (Mensing) – AG Opinion – VAT paid on intra-EU acquisition to be included in taxable amount under profit margin scheme

Place of Supply

• Federal Fiscal Court refers to ECJ: voucher codes as single-purpose vouchers – doubts about the ‘known place of supply’

• ECJ C-791/22 (Hauptzollamt Braunschweig) – Questions – Possibility for the tax authorities in Germany to collect import VAT on untaxed in Poland

Private Use

• Input tax deduction for middle-class clothing?
• Input VAT deduction and private use of a car as part of a spouse’s pre-tax model
• Input tax deduction and private use within the framework of a spouse’s preliminary model

Rate

• VAT rate on deliveries of wood chips

• Recently introduced VAT rate of 0% for solar panel systems – New federal instructions

• Bundestag transfers gastro VAT reduction to committees

• Temporary reduction in the VAT rate for deliveries of gas and heat

• 7% VAT also for connections houses on gas network

• Rental of movable living containers subject to reduced VAT rate

• Zero VAT rate on photovoltaic systems – The Ministry of Finance’s letter comes with changes

• VAT treatment of small photovoltaic systems from 2023

• Zero tax rate for sales in connection with certain photovoltaic systems (§ 12 Paragraph 3 Sales Tax Act (UStG))

• German VAT rate changes in 2023

• Sale of aids for blind and visually impaired people

• Zero VAT rate on photovoltaic systems: Federal Ministry of Finance published draft of guidance

• 2022 Annual Tax Act: Obligations for payment service providers and 0% for photovoltaic systems

• Germany considers VAT cut to lower food prices

• Zero VAT rate on photovoltaic systems: Federal Ministry of Finance published draft of guidance

• 2022 Annual Tax Act: Obligations for payment service providers and 0% for photovoltaic systems

• Germany considers VAT cut to lower food prices

• Proposal to scrap VAT on fruit and vegetables sparks debate in Germany

• FAQs on VAT incentives for photovoltaic systems

• Flashback on ECJ Cases – C-453/09 (Commission v Germany) – No reduced VAT rate for live animals/horses – VATupdate

Real Estate/Immovable Property

• Different countries, different VAT
• Acquisition of forest land – no real estate transfer tax, but VAT?

Real Time Reporting/Continuous Transaction Controls

• Mandatory e-invoicing update: B2B e-invoicing not coupled CTCs for domestic B2B transactions
• EU Sustainability Reporting Standards: EFRAG seeks experts to develop an XBRL taxonomy

Refund

• Comments on C-482/21 (Euler Hermes): Reduction of the basis for assessment of VAT due to irrecoverable Debts

• New certificate of VAT taxable status

• Recent VAT developments for travel and services apartment businesses

Registration

• The distinction between a tax number and a VAT number in Germany

• VAT registrations and simplications in Germany

• The distinction between a tax number and a VAT number in Germany

• VAT registrations and simplications in Germany

Reporting / Compliance

• GoB: Principles of proper accounting and GoDB

• Different countries, different VAT
• 2023 Intrastat thresholds
• B2B E-Invoicing – Discussion Paper

• 7 VAT Country guides on Germany

• Voluntary payment of a VAT advance payment from the previous year before it is due within the short period of time in accordance with Section 11 (2) sentence 2 EStG

• Tax compliance management: Germany is taking it seriously

• German Tax Authorities published the Regular VAT return applicable for reporting periods starting from 1 January 2023

• A guide to VAT – Doing business in Germany

• VAT Returns in Germany

• VAT return filing extension in Germany

• Country VAT Guide : Germany

Supply of Goods

• ECJ C-791/22 (Hauptzollamt Braunschweig) – Questions – Possibility for the tax authorities in Germany to collect import VAT on untaxed in Poland

Supply of Services

• BFH decision about VAT supply of heat from a combined heat and power plant

• VAT treatment of the provision of mobile advertising

• Waiver of head physician’s right for future private liquidation subject to VAT

Tax Point (When the Chargeable Event Occurs)

• Accrual and adjustment of VAT in the case of payment in installments for an executed delivery

• ECJ C-791/22 (Hauptzollamt Braunschweig) – Questions – Possibility for the tax authorities in Germany to collect import VAT on untaxed in Poland

• Federal Ministry of Finance: When is VAT chargeable on partial supplies and instalment payments?

Taxable Amount

• Flashback on ECJ Cases C-72/05 (Wollny) – Use of immovable property belonging to a business for private purposes of the taxable person

• ECJ C-180/22 (Mensing) – AG Opinion – VAT paid on intra-EU acquisition to be included in taxable amount under profit margin scheme

• FG: Voluntary donations for streaming services are taxable

• BFH: Addition of transport costs in the case of outward processing
• FG Munich on the relationship between customs value and transfer prices in subsequent collections – current developments
• ECJ C-713/21 (Finanzamt X) – Judgment – Composite supply by owner of a competition horse training stable?

• VAT conversion rates, overview for the year 2022

• VAT conversion rates, overview for the year 2022

• VAT treatment of disbursement; BFH judgment of July 3, 2014, VR 1/14

• Monthly updated overview of VAT exchange rates for 2022

Taxable Person

• Flashback on ECJ Cases C-430/04 (Feuerbestattungsverein Halle) – Public bodies are taxable persons in case of competition with private persons
• ECJ C-713/21 (Finanzamt X) – Judgment – Composite supply by owner of a competition horse training stable?
• VAT status and input tax deduction for research institutions
• VAT status and input tax deduction for research institutions

Taxable Transaction

• New ECJ Referral: BFH is re-referring Norddeutsche Gesellschaft für Diakonie mbH (C-141/20) to the ECJ
• ECJ C-68/23 (Finanzamt O) – Questions – Definition of single-purpose and multi-purpose vouchers – Tax treatment of prepaid cards or vouchers for the purchase of digital contents 

• Insurance Premium Tax on guarantee commitments: Tax authorities provide further guidance

• The Application of IPT rather than VAT to Guarantee Commitments

• ECJ C-713/21 (Finanzamt X) – Judgment – Composite supply by owner of a competition horse training stable?

• Recharging costs does not qualify as a taxable service

• Waiver of head physician’s right for future private liquidation subject to VAT

Technology

• Changes in German VAT Forms 2023 in SAP Business ByDesign

TOMS (Tour Operators Margin Scheme)

• European Commission Closes Infringement Procedure Against Germany Regarding Special VAT Travel Agent Scheme

• European Commission Closes Infringement Procedure Against Germany Regarding Special VAT Travel Agent Scheme

• New VAT requirements for the travel industry are pushed back

• Germany Delays VAT Changes For Tour Operators

• Recent VAT developments for travel and services apartment businesses
• Flashback on ECJ Cases – C-31/10 (Minerva Kulturreisen) – TOMS does not apply to the individual sale of opera tickets by a travel agent without a travel service being provided

VAT group

• Update German VAT Group

• Supreme Tax Court: Two follow-up decisions on VAT group requirements
• ECJ referral on intra-group supplies / financial integration without majority of voting rights
• Federal Fiscal Court: VAT grouping rules in Germany
• VAT Groups in Germany: ECJ‘s Decision on Their Compliance – VATupdate

• Latest ECJ case law on VAT groups

• Need for reform in the VAT group: Groundbreaking ECJ judgments

• VAT grouping, other VAT developments

• VAT grouping, other VAT developments

ViDA

• E-Invoicing Developments in Northern Europe
• B2B E-Invoicing – Discussion Paper

Vouchers

• ECJ C-68/23 (Finanzamt O) – Questions – Definition of single-purpose and multi-purpose vouchers – Tax treatment of prepaid cards or vouchers for the purchase of digital contents 

• Federal Fiscal Court refers to ECJ: voucher codes as single-purpose vouchers – doubts about the ‘known place of supply’

Webinar/Event/Podcast

• Event: E-Invoicing summit in Berlin on June 12th and 13th, 2023

• Event: E-Invoicing summit in Berlin on June 12th and 13th, 2023