Germany: Draft tax reform bill includes mandatory e-invoicing, other VAT developments
A draft tax reform bill would introduce mandatory use of e-invoicing for supplies between domestic companies
A draft tax reform bill would introduce mandatory use of e-invoicing for supplies
The draft tax reform bill published by the Federal Ministry of Finance (BMF) on 17 July 2023 (read TaxNewsFlash) would introduce mandatory use of electronic invoices (e-invoicing) for supplies between domestic companies effective 1 January 2025.
The bill also includes other value added tax (VAT) related provisions, including certain simplifying measures for small businesses.
Read a July 2023 report [PDF 508 KB] prepared by the KPMG member firm in Germany
Other recent VAT developments that may affect businesses in Germany include the following items:
- Fixed establishment for VAT purposes (CJEU, ruling of 29 June 2023, C-232/22)
- Travel services in case of isolated purchase and sale of accommodation services (CJEU, ruling of 29 June 2023, case C-109/22)
- Taxation of spa taxes (CJEU, ruling of 13 July 2023, case C-344/22)
- Margin taxation in case of works of art (CJEU, ruling of 13 July 2023, case C-180/22)
- Waiver for reasons of equity in relation to interest on arrears in case of inappropriate allocation of transactions (BFH, ruling of 23 February 2023, V R 30/20)
- Input VAT deduction of managing holding company (BFH, ruling of 15 February 2023, XI R 24/22 (XI R 22/18))
- Market fees and initial costs (BMF, guidance of 20 June 2023, III C 2 – S 7200/19/10006 :001)
- VAT exemption of intra-community supplies of goods (BMF, guidance of 11 July 2023, III C 3 – S 7141/21/10002 :00)
- Special VAT audits 2022 (BMF, announcement of 10 July 2023)
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.