News:
Date added: 27.12.2019From January 1, 2020, Germany will change the rules for VAT taxpayers. The government has revised the tax system. Today, companies whose annual turnover does not exceed 17.5 thousand euros for the previous reporting period are not required to pay tax, provided that the turnover for the next 12 months does not exceed 50 thousand euros.
Starting from the new year, Germany will increase the threshold for companies to 22 thousand euros. Profit ratios will apply for the reporting period of 2019.
Reporting rules for startups will also change. The government invited companies developing an innovative product to use a common VAT payment system with few exceptions. Today, startup managers are required to report monthly for the first year of work.
Under the new rules, they will be able to submit reports every 3 months, like other companies. The exception is only those organizations that have paid VAT for the last reporting period of more than 7.5 thousand euros. In this case, enterprises continue submitting documents monthly.
Law company Law&Trust offers its services for VAT payers in Germany. Our lawyers will tell about the new rules for reporting and the possibility of using a common filing system and help move to the new system.