The draft bill for the Annual Tax Act 2024 plans to extend the transition period for the new regulation on the taxation of legal entities under public law in the German VAT Act by a further two years. This extension is due to ongoing uncertainties and problems faced by public bodies during the changeover. The initial transition period of five years was extended due to the Covid pandemic and later the war against Ukraine. The proposed eleven-year transition period has been justified by unresolved fundamental questions and uncertainties.
Source KMLZ
