German tax authorities announced a further extension of a regulation concerning the value added tax (VAT) treatment of the supplies of goods via consignment stocks. The new extension applies through (until the end of) 2019.
The German Ministry of Finance (BMF) in October 2017 issued guidance that reflects a revised position concerning the VAT treatment of supplies of goods via consignment stocks. The change applies in all “open cases.” To allow more time for the change to be implemented, the regulation regarding non-objections was extended by one year, to the end of 2018 in subsequent BMF guidance (14 December 2017).
In the meantime, a consensus reached at the EU level on 2 October 2018 in relation to “quick fixes” (from 1 January 2020) includes a separate regulation relating to cross-border supplies of goods within the EU via consignment stock and the conditions under which an intra-Community regulation exists. Given that this EU position does not correspond to the BMF guidance (October 2017), the German authorities have agreed to extend the regulation regarding non-objections until the end of 2019 (BMF guidance of 31 October 2018).
Read a November 2018 report [PDF 285 KB] prepared by the KPMG member firm in Germany
Other recent VAT developments that may affect businesses in Germany and discussed in the KPMG report include the following items:
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