Changes include modification of definition of delivery of work
The German Annual Tax Act 2024, which was approved by the upper house of Parliament (Bundesrat) on November 22, 2024, and the lower house of Parliament (Bundestag) on October 18, 2024, includes various changes related to value added tax (VAT).
In particular, to facilitate implementation of a 2013 decision of the Federal Tax Court (BFH), the definition of delivery of work will be modified to include only processing and finishing “third party” goods (§ 3 (4) sent. 1 German VAT Law (UStG)). The new regulation enters into effect on the day following promulgation.
Read a November 2024 report prepared by the KPMG member firm in Germany
Other recent VAT developments that may affect businesses in Germany include: