Germany: Anticipated VAT legislation for online trading | KPMG | BE

Germany: Anticipated VAT legislation concerning online trading

Germany: Anticipated VAT legislation for online trading

The Council of the EU in December 2017 adopted measures intended to simplify the value added tax (VAT) system for online businesses in the EU.

1000

Related content

Among other things, the anticipated VAT system would—effective 1 January 2021—treat an operator of electronic marketplaces for distance sales from the EU and from third countries (e.g., business-to-consumer transactions) as if the electronic marketplace had received and delivered the goods itself, provided that the value of the consignment would not exceed €150. It would be possible, on the basis of the VAT Directive, to extend application of joint and several liability to the operator of the electronic marketplace (even before 1 January 2021). 

In Germany, the governing coalition agreement among the ruling political parties (CDU, CSU, and SPD) envisages new legislation to combat VAT fraud associated with the online trading in goods. Under this new system, operators of electronic marketplaces that fail to prevent “dishonest” traders from using their electronic marketplace would be liable for the amount of VAT evaded in such transactions. 

 

Other recent VAT developments that may affect businesses in Germany include the following:

  • Price discount for supplies of medicines (CJEU judgment issued 20 December 2017 in case C-462/16 – Boehringer Ingelheim Pharma)
  • Football, sightseeing tour subject to VAT (CJEU judgment issued 18 January 2018 in case C-463/16 – Stadion Amsterdam CV)
  • BFH judicial proceedings on retroactive correction of invoices (BFH cases no.: V R 48/17 and XI B 54/17)
  • VAT exemption for rental of real estate with fixtures (BMF guidance of 8 December 2017)
  • Place of supply of services in connection with real estate (BMF guidance of 5 December 2017 and of 13 February 2018)

 

Read a January-February 2018 report [PDF 313 KB] prepared by the KPMG member firm in Germany.

© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit