News – Germany
Check changes in accounting, tax and advisory services.
If your company already has or plans to do business on the German market, read the table below in which we present the most important changes in laws in 2020
|Topic||Commencement of the act||Effects|
|Employment||01.01.2020||The daily allowance for additional meal expenses increases as follows:
|01.01.2020||Employees with limited tax liability in Germany who are neither domiciled nor have their habitual residence in Germany, but who carry out their activities as employees in Germany, must apply for a tax identification number at the tax office which is responsible for the German company. Basically, the employee can also authorize the German employer to apply for this tax identification number.|
|VAT||01.01.2020||In accordance with Art. 306-310 of the Council Directive 2006/112/EC from now on the margin scheme (established by Art. 308 of the Council Directive 2006/112/EC) is also applicable for travel services between taxable persons (business-to-business travel services). In the past, the special scheme for travel agents was only applicable for travel services provided to non-taxable persons.|
|VAT||01.01.2020||Germany implemented the EU VAT Quick Fixes:
§ A uniform simplification regime regarding call-off stock in all EU Member States.
§ A default rule regarding the EU cross-border chain transactions.
§ Rules for documenting EU cross-border movements of goods.
§ The requirement of a mandatory VAT ID number verification for exempt Intra-Community supplies.
|Administrative||01.01.2020||Germany also implemented rules regarding the automatic exchange of information in relation to reportable cross border arrangements, § 138d-§ 138k of the German Tax Code (AO).|
|General comment||in 2020||In December 2019 the Federal Ministry of Finance published a draft bill for a law to implement the Anti-tax-Avoidance-Directive. The draft bill provides a reform of the controlled foreign corporation (CFC) rules as well as drastic tightening of the so-called exit tax in EU/EEA matters.|
|Special taxes||in 2020||In 2020 there will be significant amendments of the German Real Estate Transfer Tax Act on real estate transactions structured as share deals.|
The above data received in cooperation with KRESTON BANSBACH.