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VAT News 03/2015
German VAT Act amended at the turn of the year 2014 / 2015
The law on amendment of the German Fiscal Code to match the Customs Code of the European Union and the amendment of further tax provisions (ZollkodexAnpG) dated 30 December 2014 also serves to amend the German VAT Act. In addition to minor changes, the Federal Ministry of Finance is authorized to extend the scope of the reverse charge mechanism by statutory instrument within the scope of the Quick Reaction Mechanism. The law also restricts the reverse charge mechanism as regards metals. The German legislature has amended the recent extension which came into effect on 1 October 2014 (so-called Croatia Act).
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VAT News 02/2015
New regulations for voluntary self disclosures as of 1 January 2015
Since 1 January 2015, the right to voluntary disclosure has been substantially tightened by extending the period of adjustment up to 10 years as well as by increasing penalties in accordance with sec. 398a of the German General Fiscal Code. There is relief regarding VAT as the previous legal situation is partially set back to resemble the situation prior to the coming into force of the Illegal Earnings Combat Act. It is now once again possible to make several corrections regarding monthly VAT returns. However, this does not apply to annual VAT returns.
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VAT News 01/2015
Good faith regarding supplies by alleged defaulting traders
The tax authorities often deny VAT deduction by saying the entrepreneur received the goods from a “defaulting trader”. Currently, the legal concept of good faith is of no importance in the assessment procedure. However, according to the latest decisions by the Federal Fiscal Court, this might be viewed differently in the future. In tax disputes, the question as to who actually bears the burden of proof regarding good faith will need to be determined.
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