This guidance explains that German businesses can apply to extend the deadline for filing VAT returns by one month. If the extension is used, a special advance payment equal to one‑eleventh of the previous year’s advance payments must be paid, and it is credited in the December advance payment calculation. The special payment can be corrected upon application if expected VAT changes due to a rate change.
It is one‑eleventh (1/11) of the sum of the previous year’s advance payments.
Businesses can apply at any time, and the guidance is effective from 6 February 2026.
It is credited in the calculation of the December advance payment.
Yes, it can be corrected upon application if expected VAT changes due to a rate change.
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Bloomberg Tax · 10 days ago
The German Ministry of Finance clarified rules on input VAT deductions for subsidized service providers that operate at persistent loss. The BMF Letter states that such providers cannot deduct input VAT for services unrelated to taxable activity and must satisfy a two‑step test linking remuneration to performance and confirming economic activity. The letter also amends the VAT Application Decree.
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KMLZ · 21 days ago
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KMLZ · 21 days ago
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