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Tax & Legal

Supermarket discount model “Membership” is subject to the standard tax rate VAT


In its judgment of 18 December 2019 (XI R 21/18) published on 22 May 2020, the Supreme Tax Court ruled that the granting of a right to purchase goods at a reduced price (in the form of a “membership”) constitutes an independent service for VAT purposes and not just a service ancillary to the subsequent sale of goods. Even if the supermarket sells goods that are subject to both the standard tax rate (19%) and the reduced tax rate (7%), the standard tax rate is to be applied to the membership fee. Continue reading

Government releases draft Corona – Tax Assistance Bill


At its meeting on 6 May 2020, the Federal Cabinet adopted the Corona Tax Assistance Bill, which – with the exception of editorial changes – essentially corresponds to the Federal Ministry of Finance’s original formulation. The only change worth noting here is an addition to the explanatory memorandum on the tax exemption on subventions by employers to reduced hours compensation payments and seasonal reduced hours compensation payments vis-à-vis corrections to salary withholding tax deducted prior to the Act taking effect. Continue reading

COVID 19: Summary of measures introduced to combat the effects of the coronavirus (COVID 19/SARS-CoV-2)


This article is intended to provide an overview of the current measures taken in connection with the spread of the coronavirus, particularly in tax law.

A: Material on tax measures in Germany;

B: Measures in other areas in Germany;

C: Measures at European level.

D: Measures worldwide Continue reading

Tax Authorities release tax measures to combat the effects of coronavirus (COVID 19/ SARS-CoV-2)


This morning both the Federal Ministry of Finance and the Supreme Tax Authorities of the Federal States (“the Länder”) released a circular and a decree (respectively) introducing tax measures to combat the effects of the coronavirus (COVID- 19 /SARS-CoV-2). In this Newsflash we would like to inform you of the measures.

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