Due to the economic challenges because of Covid the German Ministry of Finance published further extensions of deadlines and tax relief measures due to the coronavirus pandemic. For more details please see the link.
In a decree dated 22 December 2020, the German Federal Ministry of Finance (Bundesministerium der Finanzen, or BMF) has published the forms for the 2021 preliminary VAT returns (Umsatzsteuer-Voranmeldung, UStVA).
Publication by PwC Germany
The Federal Ministry of Finance’s (Bundesministerium der Finanzen, or BMF) decree dated 9 October 2020 gives an interpretation of two of the four Quick Fixes implemented in the German VAT Act (Umsatzsteuergesetz, or UStG) in 2020, amending the VAT Application Guidelines accordingly. The decree covers the VAT identification number (VAT ID) being a substantive requirement for zero-rating of intra-Community supplies of goods (including timely submission of correct and complete EC Sales Lists), and new documentary evidence for zero-rating. No guidance has so far been issued on the new provisions for chain transactions and the simplification for call-off stock. This newsflash deals with the most important amendments to the VAT Application Guidelines.
Publication by PwC Germany
The German Federal Ministry of Finance (Bundesministerium der Finanzen, or BMF) has published a decree on retroactive correction of VAT invoices. The tax authorities’ VAT application guidelines have been updated accordingly. The decree follows the principles of European Court of Justice (ECJ) case law and certain principles of national case law as developed by the Federal Fiscal Court (Bundesfinanzhof, or BFH).
The German legislator has recently published a draft law reducing the German VAT rates for the second half of 2020 in order to cope with the consequences of the Covid-19 pandemic. According to the draft law, the standard VAT rate will be reduced from 19% to 16% and the reduced VAT rate from 7% to 5% in the period 1 July to 31 December 2020.
The Federal Ministry of Finance (BMF) has already published a draft decree dated 11 June 2020 on the temporary reduction and (re)increase of VAT rates. To date, it is not yet fully clear when a final version of the decree will be published. In many cases, the draft of the decree resembles in detail the BMF decree of 11 August 2006, which was issued at the time of the last standard VAT rate increase (on 1 January 2007) from 16% to 19%.
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Gestern hat sich die grosse Koalition in Deutschland (CDU und SPD) auf ein Konjunkturpaket geeinigt. Dies umfasst unter Anderem eine Reduzierung des Umsatzsteuersatzes.
Vom 01. Juli 2020 bis 31. Dezember 2020 soll der Umsatzsteuersatz wie folgt reduziert werden:
Yesterday the governing coalition in Germany agreed to a reduction of the VAT rates in Germany from 01 July 2020 to 31 December 2020 as follows:
The Federal Ministry of Tax announced within the Q&A section re Covid-emergency measures that donations of medical equipment, as well as the free provision of personnel for medical purposes, will be exempt from value added tax from April 3, 2020 until the end of the year for beneficiary organizations. Nothing was published yet.
If you are interested in further details please contact the following person.
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The government published plans to postpone the due date for tax payments upon application of the taxpayer, free of charge.
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In Brief
In a circular letter dated April 23rd 2018, the German Federal Ministry of Finance (FMOF) repealed the German tax authorities’ previous simplification regulation for the so-called intra-Community movement of own goods in the border area (Section 1a.2(14) of the German VAT Application Decree [Umsatzsteuer-Anwendungserlass, or UStAE]). Read More »
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Michaela Merz 