- Germany plans to reform VAT grouping with a new declaration-based procedure instead of an application process, effective from 1 January 2029.
- A VAT group will only exist if the controlling entity declares it in advance; even if the substantive conditions are met, no group arises without this declaration.
- The controlling entity may choose which subsidiaries to include, and it must notify authorities promptly if the group conditions later cease to be met.
- Partnerships will in future be allowed to join VAT groups under the same conditions as legal persons.
- If a declaration is filed but the legal requirements are not actually met, no VAT group is created; procedural rules are intended to allow corrections even when one party’s assessment period has already expired.
Source: kmlz.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.
