• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 3/14/2014

Germany - VAT on pre-financing obligation, lease-termination payments 

March 14: Decisions concerning indirect tax or value added tax (VAT) from Germany’s federal tax court concern the following topics:
  • Restriction of pre-financing obligation for standard VAT accounting
  • Requirement for a separate VAT exemption
  • Higher VAT rate under EU law – effect on the input VAT deduction

Developments from the federal tax administration concern:

  • Supply and input tax deduction when there is fraud by the supplier
  • Adjustment payments upon termination of lease arrangements
  • Tax liability of the recipient of construction work and building cleaning services

Read a March 2014 report [PDF 431 KB] prepared by the KPMG member firm in Germany: MwSt. VAT Newsletter

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