Germany: Draft bill for Annual Tax Act 2024 includes VAT-related measures, other VAT developments

Recent VAT developments that may affect businesses in Germany

Recent VAT developments that may affect businesses in Germany

Businesses have received an unofficial version of a draft bill for an Annual Tax Act 2024. The draft bill has not yet been published by the Federal Ministry of Finance (BMF), but according to reports the draft has been submitted by the BMF for early coordination within the government.

The draft bill includes value added tax (VAT) amendments relating to:

  • Place of supply of other services for virtual services
  • Exemptions
  • Issuing invoices
  • Input tax deduction
  • One-stop shop procedure
  • Small businesses
  • Brexit

Read an April 2024 report prepared by the KPMG member firm in Germany

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

  • CJEU
    • Taxation of vouchers (judgment of 18 April 2024, C-68/23) (read TaxNewsFlash)
    • Benefits in kind (judgment of 25 April 2024,C-207/23)
  • Federal Tax Court (BFH)
    • Requirements for the person of recipient of the supply within the meaning of § 13b (5) sent. 1 UStG (ruling of 31 January 2024, V R 20/21)
    • Input VAT deduction in the case of health resorts (ruling of 18 October 2023, XI R 21/23 (XI R 30/19))
    • VAT margin scheme for works of art (ruling of 22 November 2023, XI R 22/23 (XI R 2/20))
    • Stock corporation as a subordinate company (ruling of 13 March 2024, V B 67/22)
    • Interest on arrears and Union law (ruling of 1 March 2024, V B 34/23 (AdV))



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