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Customs Law
Environmental Taxes
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VAT
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The German government is using the last days of the legislative period, to ease the burden of bureaucratic regulations as from 2025. Inter alia, reporting obligations under the Foreign Trade and Payments Ordinance (AWV) are being amended. Amounts that trigger reporting requirements will be increased, while other reporting obligations will be removed. However, violations of reporting obligations will still be punishable by a fine. As before, there is the option of disclosure. In this case, a fine can no longer be imposed.
The tax authorities often question the input VAT deduction of holding companies. A recent ECJ judgment is now turning attention in a different direction. The case concerns the input VAT deduction of a group company from supplies of another group company. The arguments discussed by the ECJ in this context could also be put forward by the tax authorities in any other group against the input VAT deduction of subsidiaries.
The German Federal Fiscal Court has now issued its final ruling on VAT groups: It has been established that the German VAT group remains in force and that internal supplies between the controlling company and the controlled company are still not subject to VAT. This ruling not only creates legal certainty, but also considerable leeway for legal entities under public law and non-profit organisations.
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