On July 25, 2019, the EU Commission decided to take Germany to the European Court of Justice (ECJ) for incorrectly applying the special VAT regulation for farmers.
The Federal Court of Auditors has noted that German farmers and foresters to whom the average rate taxation applies receive a flat-rate deduction of input tax which exceeds the input tax they pay. However, according to the EU Commission’s rules, this is not permitted and leads to major distortions of competition on the internal market, especially in favour of large farmers who have no difficulties with the normal VAT rules.
Source: js-steuerberater.de
Latest Posts in "Germany"
- Germany 2026 Tax Reform: Permanent 7% VAT for Restaurants, Increased Charitable Allowances
- Germany Releases E-Invoicing Guideline Aligning VAT Law with EU Standard EN 16931
- German MOF Proposes Tax Relief Measures in Draft Tax Amendment Act 2025
- Germany Proposes Permanent VAT Reduction for Restaurant Services in 2025 Tax Amendment Bill
- Webinar MDDP: E-invoicing for SMEs – upcoming changes in Poland, Germany and Belgium (Sept 9)
