The Federal Finance Ministry has issued a circular on the implementation of the decision of the Federal Constitutional Court of July 8, 2021 regarding the inappropriate statutory interest rate on late payment and refund taxes. The ministerial notice will have to be applied for the transitional period until retroactive new provisions on the interest rate pursuant to sections 233a, 238 (1) sentence 1 of the German Fiscal Code (AO) for interest periods starting on or after January 1, 2019 are in place. Continue reading
Tax & Legal
In a current circular the Federal Finance Ministry introduces model forms for 2021 and subsequent years with respect to the VAT registration of entrepreneurs domiciled abroad. Continue reading
The Federal Tax Office, by way of a circular, has adjusted its VAT Application Ordinance with regard to the 2019 ruling by the European Court of Justice on the determination of the place of supply of services in connection to the admission to educational events. Continue reading
In a current circular, the tax authorities generally comment on the VAT treatment of services provided by exchanges and other trading platforms for financial products and, in this respect, partially amends an earlier decree issued in 2018 with regard to trading platforms for the acquisition or trading of Bitcoin and other so-called crypto currencies. Continue reading
On 30 June 2021, the Federal Ministry of Finance published information on its homepage regarding the abolition of the small consignment exemption limit. Continue reading
On 25 June 2021, the Bundesrat approved the extension of the filing deadline for the 2020 tax return by three months. Continue reading
In its session on 25 June 2021, the Bundesrat gave its approval to the Act to Modernise Corporate Income Tax Law. The Bundesrat thus followed the recommendation of the Finance Committee. The law is should enter into force on 1 January 2022.
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On 17 March 2021, the German Federal Ministry of Finance (BMF) published a decree on the application of Section 8 (2) of the Foreign Tax Act (AStG) which stipulates the “motive test” taxpayers have to meet to escape controlled foreign company (CFC) taxation. Continue reading
VAT record keeping and joint and several liability for operators of electronic interfaces as of July 1, 2021. Continue reading
At a plenary session on 28 April 2021, the EU Parliament formally approved the EU-UK Trade and Cooperation Agreement. The agreement had been provisionally applicable since 1 January 2021 but will now enter into force formally on 1 May 2021. Continue reading