- The VAT group (Organschaft) consolidates tax responsibility on the controlling company (Organträger) while maintaining the legal independence of subsidiaries.
- Legally, both the controlling company and subsidiaries are jointly liable to the tax office.
- Internal compensation between the controlling company and subsidiaries is governed by specific legal provisions.
- Clear internal accounting, contractual agreements, and ongoing documentation are essential to ensure VAT neutrality within the group.
Source: datenbank.nwb.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.
Latest Posts in "Germany"
- ecosio Webinar: 8 Key considerations for Germany’s E-Invoicing Mandate
- End of Cuxhaven Free Zone and Updates to Customs and Energy Tax Penalties in Germany
- VAT Rules and Challenges for Restaurants in Germany: Legal Requirements, Changes, and Business Risks
- Germany Reintroduces 7% VAT for Food Services: Key Rules for Packages and All-Inclusive Offers
- Germany Launches GEBA: New Standard for Electronic Business Addressing and E-Invoicing Interoperability
