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Umsatzsteuer Newsletter 46/2019
Increase of turnover limits: Xmas present for small businesses
The Third Bureaucracy Relief Act recently passed by the German Bundestag and Bundesrat succinctly states: "In sec 19 para 1 sentence 1 of the German VAT Act, the "EUR 17,500" shall be replaced by "EUR 22,000". However, this seemingly small change will have a significant effect on many taxable persons. Even though the amendment will not come into force until 1 January 2020, (small) businesses can already benefit from it in 2019.
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Umsatzsteuer Newsletter 45/2019
Public Bodies: Gradual Extinction of Cooperations – "Started out a tiger, but ended up a bedside rug"
According to the new regulatory regime of sec. 2b of the German VAT Act, non-taxable cooperation against payment between legal entities under public law is only possible under very specific conditions of sovereignty. In its letter of 14.11.2019, the Federal Ministry of finance has now further restricted the provision of sec. 2b para. 3 no. 2 of the German VAT Act, with the conclusion: Started out a tiger and ended up a bedside rug.
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Umsatzsteuer Newsletter 44/2019
Caution with grants and subsidies
Do grants and subsidies from a third party form part of the VAT base? The ECJ answered this question in the affirmative in the proceedings C-573/18 and C-574/18. The case concerned the financing of capital goods via an operational fund. The decision shows the means by which the tax authorities attempt to make subsidies or grants de facto subject to taxation.
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