Background Since the beginning of the Corona crisis, we have recently seen a recovery of the market for company acquisitions and sales (M&A), especially in the segment of medium-sized M&A transactions. The biggest challenge in M&A transactions in times of Corona is the agreement of a purchase price, since reliable planning as a basis for a company valuation is often […]
On-demand work: risk of phantom wages In many companies there is great uncertainty when employees are deployed on call (on-demand work). This often affects mini-jobbers or flexibly employed part-time employees subject to social security contributions, who often work without a written employment contract. On-demand work is particularly the case if the scope of the work to be performed is not […]
Reduced German VAT: updated draft letter by Federal Ministry of Finance In our blog article dated June 16, 2020, we discussed the first draft of a letter issued by the Federal Ministry of Finance (BMF) with information on the practical implementation of the temporary reduction in VAT. On June 23, 2020, BMF published an updated draft of the aforementioned letter. […]
Temporary reduction of German VAT: initial guidance by the Ministry of Finance on its practical implementation Companies face major tax and administrative challenges from the temporary reduction in German VAT. The German Federal Ministry of Finance (BMF) published an 18-pages draft on June 15, 2020 with information on the practical implementation of the temporary reduction in VAT (BMF Letter). Notes: […]
Temporary reduction of German VAT: how to deal with continuous services The German Federal Government agreed on June 3, 2020, to stimulate the German economy by reducing VAT rates from 19% to 16% (standard rate) and from 7% to 5% (reduced rate) in the period from July 1 to December 31, 2020 (see also our blog article). Rentals, leasing (cars, machines, etc.) […]
Temporary reduction of German VAT in 2020 and its implications on businesses: time to act quickly The German Federal Government agreed on June 3, 2020, to stimulate the German economy by reducing VAT rates from 19% to 16% (standard rate) and from 7% to 5% (reduced rate) in the period from July 1 to December 31, 2020 (see also our blog article). […]
Economic stimulus package of the German Government: Measures at a glance The German Federal Government agreed yesterday, June 3, 2020, on measures to stimulate the German economy as a response to the implications of the Coronavirus-epidemic. The measures have still to pass through legislative procedures. In the following, a selection of planned tax-related measures is summarized. Reduction of value added tax: […]
VAT liability for cross-border transportation services: Ministry of Finance has extended the deadline In our blog article “VAT liability for cross-border transportation services: Important changes for forwarding agents“, we reported that for transportation services revenues carried out before 1 July 2020, the tax authority will not object if the previous principle was applied. The Federal Ministry of Finance has extended this […]
