2024 German Tax Law Amendments: VAT Changes and Small Business Impact

• New legislative regulations on VAT introduced by the Annual Tax Act of 2024
• Main focus is the reform of small business taxation starting in 2025 based on an EU directive
• Changes also include reduction and adjustment of average rates for agriculture and forestry
• Extension of the transitional period for the taxation of legal entities under public law
• Adjustments made to input tax deduction for services by a business subject to actual taxation
• Regulations have been adapted to comply with the rulings of the European Court of Justice and the Federal Fiscal Court
• The article provides an overview of VAT changes and includes a table with affected regulations and effective dates
• Additional notes on other current regulatory changes and new obligations starting in 2025 are included

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.

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