- Germany may introduce an import VAT offsetting model by January 1, 2030, allowing import VAT to be directly offset against the related input VAT deduction and avoiding pre-financing; the measure still requires legislative and technical implementation.
- Proposed broader customs administration reforms are planned to modernize and structurally reorganize customs administration.
- Recent CJEU/GCEU case law addressed several VAT issues, including: the travel agent margin scheme applying to loss-making promotional excursions; directors being able to challenge underlying VAT assessments when held liable for unpaid VAT; VAT-exempt leasing during a business transfer requiring input VAT adjustment; and limits on national restrictions for non-taxable asset transfers.
- Other CJEU/GCEU rulings held that gifts of co-ownership interests in a sole proprietorship are not non-taxable transfers, and that transport under duty suspension does not automatically make a supply VAT-exempt.
- German courts and the BFH/CJEU referral activity also covered: possible fixed establishments in automated settings, deductibility of advisory costs for damages claims after an aborted project, restrictions on cash accounting, canteen cost recharges as internal allocations, a de minimis threshold challenge for input tax adjustments, and liability for incorrectly shown VAT on anonymous receipts.
Source: kpmg.com
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.
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