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Germany: VAT changes proposed in annual tax legislation

Germany: VAT changes proposed in annual tax legislation

The German Ministry of Finance (BMF) published a draft bill of annual tax legislation for 2018 that includes certain value added tax (VAT) measures or amendments.


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As proposed, the VAT changes would be effective 1 January 2019. 

Among the VAT-related provisions in the draft legislation are the following proposals to:

  • Transpose Directive (EU) 2016/1065, concerning the VAT treatment of vouchers, into German national law
  • Require operators of electronic marketplaces to record details of users for transactions that may be subject to VAT in Germany, thereby enabling the tax authorities to examine whether the supplying contractor or user has satisfied the tax obligations
  • Implement rules on VAT liability of operators of electronic marketplaces 
  • Follow new EU regulations for services from 2019 and the new VAT treatment of authors and copyright-collecting societies (following a judgment of the Court of Justice of the European Union (CJEU))


Read a July 2018 report [PDF 301 KB] prepared by the KPMG member firm in Germany


Other recent VAT developments that may affect businesses in Germany include the following items:

  • Holding companies as contractors (CJEU judgment of 5 July 2018 – case C-320/17 – Marle Participations)
  • Zero-rated importation followed by intra-Community supply (CJEU judgment of 20 June 2018 – case C-108/17 – Enteco Baltic)
  • VAT grouping and margin taxation concerning travel services (German federal tax court (BFH) decision of 1 March 2018, V R 23/17)
  • Trade association demand for deadline extension in situations of consignment stocks (Germany’s leading industry associations, submission of 19 June 2018)
  • Submission to the CJEU on used car dealers and the “small undertakings scheme” (BFH referral of 2 July 2018, XI R 7/16)

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