PwC

Tax & Legal

Tax & Legal

Climate Protection Progamme 2030 – Approved by Bundestag and Bundesrat


On 25 October 2019, the German Bundestag discussed the implementation of the climate protection programme 2030 into tax law. This was followed by a public hearing on 6 November 2019.

The bill for the implementation of the climate protection programme 2030 in tax law had been adopted by the Federal Government on 16 October 2019.

The amendments to the law will initiate tax measures designed to support climate protection in the areas of transport, housing and energy generation.

UPDATE: The Act has now been approved by the Bundestag (19 December 2019) and by the Bundesrat (20 December 2019) Continue reading

Referral to European Court of Justice: VAT exemption for the development and brokerage of insurance products


Does an insurance broker, who makes- in addition to his brokerage activities -a brokered insurance product available to an insurance company, provide VAT-exempt services? The Supreme Tax Court considered this doubtful and decided on 5 September 2019 ( V R 58/17), to refer the question to the Court of Justice of the European Union (ECJ) for a preliminary ruling.  Continue reading

Proof of VAT-exempt intra-Community supplies


For the purposes of establishing whether an VAT-exempt intra-Community supply had been made, where other evidence exists establishing that the motor vehicles had been sent to their destination in the other EU country, the assumption of the absence of documentary evidence could not contradict such other evidence.

The proof of the customer’s entrepreneurial status resulting from the VAT ID number cannot be refuted by the mere assumption of a letterbox address. Continue reading

Waiver of exit tax upon return to Germany


According to Section 6 (1) of the Foreign Taxes Act (FTA), where a taxpayer’s unlimited tax liability ceases through the taxpayer giving up his German residence/habitual abode, any material shareholdings held in his private property will be deemed as disposed of even without a sale and any capital gain on the deemed disposal will be taxable under Section 17 (1) of the Income Tax Act (ITA). Section 6 (3) FTA provides for this so-called exit tax to be subsequently waived in certain circumstances. The Münster Tax Court held that in addition to the (objective) re-establishment of the unlimited tax liability (i.e. the re-establishment of the German residence/habitual abode), it was also necessary for the taxpayer to provide credible evidence that the will to return existed (subjectively) upon departure. Continue reading

New Finance Ministry circular on standards for the proper keeping and storage of books, records and documents in electronic form and for data access


On 28 November 2019 the Federal Ministry of Finance (MoF) issued a revised circular on standards for the proper keeping and storage of books, records and documents in electronic form and for data access (here “GoBD”) – ( IV A 4 – S 0316/19/10003 :001 (2019/0962810). Continue reading

Bundesrat approves Finance Act 2019


In its plenary session last Friday, the Bundesrat approved the Act on the Further Tax Promotion of Electric Mobility and the Amendment of Further Tax Regulations (“Finance Act 2019”) Continue reading