Everybody knows about it, everybody has to pay it, scarcely anybody likes it. One feels a bit sorry for VAT. Yet it is the great driver of Germany, and German revenue collects approx. 226 billion euros of VAT per year. Making VAT, by far, the highest revenue generator of all taxes in Germany.
Cases of fraud are correspondingly high. Experts speak of an amount of approx. 24 billion euros of VAT receipts which are lost as a result of fraud in Germany.
This is a significant sum, and no finance minister on earth would voluntarily refrain from collecting it. The German Finance Minister’s answer: a broader scope of the reverse charge scheme, an increased number of VAT special audits and electronic audits.
These audits lead to 4 billion euros in VAT being additionally assessed. The increasing formalization of VAT also means further potential risks for all taxpayers.
VAT transactions are often great in number and inter-related. Even a small error can have a major effect. The task for each company is to manage these transactions in such a way as to maximize any input VAT refund. Here, professional advice really pays off – in the true sense of the word.
In addition, the growing globalization of VAT is creating more and more confusion. The division of labour – often cross-border – is a reality which has to be faced. With our experience and that of our partners throughout Europe, we can assist you in finding a correct and practical solution.