The introduction of the One-Stop-Shop (OSS) process on July 1, 2021, has brought numerous benefits to German e-commerce companies. Nevertheless, practical application shows that e-commerce companies that use sales platforms such as eBay for their sales are confronted with significant hidden risks when creating outgoing invoices. These risks often only come to light during a tax audit. Background If a […]
Entrepreneurs are allowed to deduct input VAT if business events do not serve purely private needs but are related to business activities. Input VAT deduction for attentions depends on the overall activity. The input VAT deduction requires a direct and immediate connection between input and output turnover. If the connection exists with taxable output transactions, the deduction is possible. If […]
The EU authorizes Germany to introduce electronic invoicing (e-invoicing) for certain transactions as early as January 01, 2025, before it becomes mandatory throughout the EU. Germany had submitted an application on November 10, 2022, which has now been approved. The bill is to be limited to B2B sales for now and will be addressed in the Growth Opportunity Act legislative […]
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). […]
