- The German Industry Association and the Federal Chamber of Tax Advisors propose measures to reduce bureaucracy in VAT law.
- A statement with suggestions for a separate VAT procedural law was submitted to future coalition party representatives.
- The statement highlights how VAT can burden businesses due to procedural issues, despite being intended for end consumers.
- An example involves a reverse-charge procedure error, leading to a permanent VAT burden on the supplier.
- The supplier’s ability to reclaim VAT from the buyer depends on the type of price agreement.
- Cross-border transactions can also lead to VAT issues due to disagreements between tax authorities.
- The statement identifies the incompatibility of the procedural tax law with the European VAT system as a cause of business VAT burdens.
- VAT neutrality is only ensured when all parties in a transaction are assessed uniformly.
- The BDI and BStBK propose changes to procedural requirements to address these issues.
Source: ebnerstolz.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
