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Germany: Electronic solutions to VAT compliance

Germany: Electronic solutions to VAT compliance

The tax authorities, using an automated audit process for value added tax (VAT), collected an additional €1.53 billion in 2017 from companies.


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By contrast, medium- and small-size companies often refrain from using automation solutions when preparing their VAT returns. Their manual preparation of tax-relevant transactions and forms risks a high error rate. The risk is even greater for German companies that generate income abroad. The requirements for tax returns in Belgium, Austria, the UK, and the Netherlands differ greatly from German requirements. Therefore, accurate expertise is necessary to meet all legal requirements relating to overseas VAT records.

In the UK, effective April 2019, as part of the “Making Tax Digital” initiative, VAT declarations can only be filed using the appropriate software.

Read a July 2019 report prepared by the KPMG member firm in Germany that examines electronic solutions to VAT compliance requirements

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