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Germany: Relief for VAT-related obligations; other VAT developments

The Fourth Bureaucracy Reduction Act reduces retention periods for documents and eases other VAT-related obligations.

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November 5, 2024

The Fourth Bureaucracy Reduction Act, which reduces retention periods for documents and eases other value added tax (VAT)-related obligations, was enacted by the Parliament and published in the official gazette on October 29, 2024.

Read an October 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
    • VAT on electricity provided at public charging stations (October 17, 2024 decision – case C-60/23 – Digital Charging Solutions) (read TaxNewsFlash)
    • Abuse of the small company regulation under VAT directive (October 4, 2024 decision – case C-171/23 – UP CAFFE)
    • Input VAT deduction when sub-contractor is used (October 4, 2024 decision – case C-475/23 - Voestalpine Giesserei Linz)
  • Ministry of Finance (BMF)
    • Guidance on introduction of mandatory electronic invoicing (e-invoicing) from 2025 (October 15, 2024 guidance – III C 2 - S 7287-a/23/10001 :007) (read TaxNewsFlash)

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