- The German Federal Council approved the Annual Tax Act 2024 on November 22, 2024, which includes significant tax amendments such as raising the VAT exemption thresholds for small businesses from EUR 22,000 to EUR 25,000 and from EUR 50,000 to EUR 100,000.
- The act specifies that small businesses will lose their VAT exemption once turnover exceeds EUR 100,000 in the current year, while transactions before this limit remains exempt, and that exceeding the lower threshold affects the exemption from the following year.
- Additionally, the act introduces the EU small business scheme for cross-border supplies, allowing taxable persons in other EU Member States to benefit from Germany’s VAT exemption if their turnover meets certain criteria; these amendments will take effect on January 1, 2025.
Source Orbitax
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