On 01.01.2023, the German legislator implemented the DAC7 Directive. Somewhat covertly, it has laid the foundation for the introduction of a serious tax partnership between companies and the tax authorities. Those companies that have introduced an effective internal control system for tax purposes (Tax ICS) that is actually “lived” will, in the future, receive simplifications for tax audits. Everything is still being carefully formulated. However, the final go-ahead for the establishment of tax compliance management systems (Tax CMS) has been given.

If forest land is acquired, no real estate transfer tax is due, according to the German Federal Fiscal Court, insofar as the forest’s trees are to be qualified as pseudo-components. Whether this also affects the VAT treatment depends on whether the seller applies the average rate taxation method.

9-year (!) transitional period for sec. 2b of the German VAT Act: A process in German tax legislation that is unlike any other. Representatives of the federal, state and local governments, as well as other legal entities under public law, are happy to accept Berlin’s Christmas present. However, they should not rest now, but rather quickly complete the work they have already begun and create the required organisational structures to ensure that implementation is possible within two years. There is still much to do.