With effect from 1 January 2023, a VAT rate of 0% (zero VAT rate) was introduced by the Annual Tax Act 2022 in sec. 12 para. 3 of the German VAT Act. At the end of February 2023, the Federal Ministry of Finance already published a circular which clarified several questions in practice. Now, the Ministry has published another circular shedding light on additional previously unresolved issues. Are all questions now clarified for practice?
The VAT Committee of the EU Commission is currently looking into the VAT treatment of the sale of virtual products (eg “skins” from online video games) via digital platforms. The VAT Committee is to assess whether the principles of VAT law also apply to this digital business model. The VAT Committee’s working paper already indicates that conclusions can also be drawn from the upcoming opinion with regard to the trade in crypto art or NFTs via digital platforms.
The current draft of the law for an e-invoicing obligation between domestic companies for their domestic B2B transactions has, once again, been modified. Based on the current proposals, changes would come into force, in stages, from 2025. The Federal Parliament has already voted in favour. However, the Federal Council has rejected the draft, meaning a mediation process must now commence.