The German federal cabinet at the end of July 2019 approved the government’s draft bill that would implement EU “quick fixes” for the value added tax (VAT) treatment of chain transactions in the European Union, among other measures. It is proposed that the measures would have an effective date of 1 January 2020.
Implementation of the “quick fixes” in German VAT law concerns:
Additional VAT changes to be effective beginning 1 January 2020 concern the VAT exemption of cost-sharing alliances; the so-called “export over the shop counter” rule; the input VAT refund procedure; restrictions in the input VAT deduction for traders who are not residents of the EU; obligations of fiscal representatives; repeal of § 25d German VAT law (liability); and rejection of input VAT deduction and zero-rating in the instances when there is participation in tax evasion.
The VAT changes also include a new place of benefits-in-kind, the reduced VAT rate for e-books, and changes regarding travel services.
Read an August / September 2019 report [PDF 333 KB] prepared by the KPMG member firm in Germany.
Other recent VAT developments that may affect businesses in Germany include the following items:
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