Germany: Guidance on division of input VAT using overall sales key, other VAT developments
Recent VAT developments that may affect businesses in Germany
Recent VAT developments that may affect businesses in Germany
The Federal Ministry of Finance (BMF) on 13 February 2024 published guidance (III C 2 - S 7306/22/10001:001) regarding the division of input value added tax (VAT) on the basis of the ratio of transactions within the meaning of § 15 (4) sentence 3 UStG, Usage of Overall Sales Key.
Read a February 2024 report [PDF 502 KB] prepared by the KPMG member firm in Germany
Other recent VAT developments that may affect businesses in Germany include the following items:
- Court of Justice of the European Union (CJEU): Fake invoices issued by an employee (read TaxNewsFlash)
- Federal Tax Court (BFH): CJEU submission on taxation of transactions carried out using an app store (legal position up to 31 December 2014)
- BMF guidance: VAT treatment of payment of a device bonus by mobile communications company for relinquishing an end-user device by the agent of a cellular contract
- BMF guidance: Deduction of input VAT permissible on the purchase of a supply then supplied to a third party free of charge if there is no risk of a final consumption that is not taxed
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