Germany – temporary reduction of value added tax rates from July 1, 2020 -webcast on Wednesday, 24 June 2020 12.30 pm to 2 pm German time

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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Deutschland – Reduzierung UST-Satz ab dem 1. Juli 2020 bis 31. Dezember 2020

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:

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Germany – Reduction of VAT rate as from 1 July 2020 to 31 December 2020

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:

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Germany – tax measures in response to COVID-19

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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Germany- tax measures in response to COVID-19

The government published plans to postpone the due date for tax payments upon application of the taxpayer, free of charge.

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Germany – The end of the simplification regulation for cross-border sales to a multitude of (smaller) businesses

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 »

Germany – The German Federal Fiscal Court doubts the constitutionality of additional payment interest

The German Federal Fiscal Court (Bundesfinanzhof – BFH) doubts the constitutionality of supplementary payment interest of 1.5% for interest periods from 2015, and has therefore granted a suspension of execution in a summary procedure.Read More »

Germany – changes in customs law

Starting situation

The German customs authorities tightened the conditions for Swiss based companies to apply for a payment deferral account. In the past it was possible to apply for such an account without having to found an independent subsidiary in Germany.Read More »

The small saver – where tax and customs duty hurt

I frequently receive calls from acquaintances and acquaintances of my acquaintances. The problems concern taxes and customs. Read More »

Germany: Ministry of Finance publishes a new Decree on VAT grouping and input VAT recovery for holdco’s

Please find attached a newsflash from our German colleagues regarding the new Decree on VAT grouping and input VAT recover for holdco’s:

The Decree will apply to VAT groups and holdcos from  31 December 2018, but local tax authorities have the authority to allow an earlier application with explicit reference to the Decree for all transactions performed (it is not allowed to single out transactions from the application). Read More »