Category Taxation in Germany

Germany Wants to Catch Online Tax Dodgers

August 1, 2018 Taxation in Germany

ebay taxBERLIN – Germany is targeting online traders from China who sell to goods in Germany but do not pay any tax.

The government of Germany is proposing new measures which would see the burden of ensuring tax compliance online shifted to the likes of Amazon and Ebay.

The new measure would require online commerce platforms to become responsible for ensuring that third-party traders meets their VAT obligations for trades and sales which occur in Germany.

The proposed rules would require platforms to collect information about the third party traders, which could then be passed to tax authorities, who will investigate whether the traders are meeting their obligations.

Further, any noncompliance with requirements could then become liable for any tax dodging by traders.

The requirements would appl...

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Germany Should Abolish Air Taxes

October 24, 2017 Taxation in Germany

German air passenger dutyBERLIN – Germany will see an overall economic benefit to the country if it drops its taxes on air passengers.

The results of a study completed by PWC and released on October 23rd suggests that dropping Air Passenger Duty in Germany would result in a boost to the number of travellers coming to the country, and a subsequent increase in tax revenues.

Removing all APD would lead to a total of 24.6 million passengers arriving in Germany by 2020, with more than half coming for tourism.

The increase in tourist and traveller numbers would lead to an economic boost of as much as EUR 67 billion over the next 12 years.

The boost and the increase in tax collections would exceed the EUR 1 billion annual loss which would arise by dropping the tax.

The air passenger duty in Germany is levied at a rat...

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German Tax Court Dictates a Good Breakfast

October 5, 2017 Taxation in Germany

Taxes on breakfastBERLIN – A tax court in Germany has dictated what constitutes a breakfast, saying that bread without toppings does not make the cut.

The tax court of Muenster in Germany have recently ruled that bread and coffee do not count as breakfast, at least for the purposes of calculating tax obligations.

The question of the definition of breakfast arose due to a tax dispute with a local company over food given away on the business premises.

The company, a tech firm, would routinely provide free coffee and bread rolls to employees and customers.

The tax authorities claimed that the food constituted breakfast, and therefore should be treated as a complimentary meal, and taxed as such.

However, the tax court ruled that in order for the foods to be regarded as a breakfast, the bread would need to hav...

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France and Germany Keep Chasing Tech-Giants

August 28, 2017 Taxation in FranceTaxation in Germany

tech giant taxPARIS – France and Germany are stepping up their fight against tax-dodging tech-giants, despite the failures of previous moves to address the problem.

Over the weekend the Finance Minister of France Bruno Le Maire announced that the governments of France and Germany may soon reveal a new “fair contribution” tax to be levied on the profits of large multinational tech firms, such as Google and Facebook.

The exact methodology and mechanics of the new tax have not been revealed, however, the Minister did explain that tax authorities may use the revenues of the companies as a “reference point” to determine what tax level they should face in order to ensure that they are making a contribution in the countries where they generate a profit.

Large tech companies have come under fire for s...

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Germany Forced to Drop Nuclear Tax

June 8, 2017 Taxation in Germany

Nuclear Power Plant, GermanyBERLIN – Nuclear power generators in Germany are set to see a windfall of billions of euros, after a court ruled that a six year old tax on nuclear power was unconstitutional.

The Constitutional Court of Germany has ruled that the government’s tax on the use of nuclear fuel rods by energy producers is unconstitutional and void.

The ruling means that the billions of euros paid by the energy producers since 2010 will be refunded.

It has been estimated that the payout by the government could reach EUR 6 billion, even before interest is taken into account.

The German government has been taking repeated actions to diminish the use of nuclear power in the country, after vowing in 2011 that by 2022 Germany would no longer rely on nuclear-power generation.

The plan to close down the plants is ...

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