A number of federal states in Germany have extended the deadline for submitting annual VAT returns. The extension comes in the wake of devastating flooding that recently affected the west of Germany.
In a number of states, the deadline for annual VAT returns has been extended to 31 October 2021. Authorities also extended monthly and quarterly returns, in several cases.
As the VAT extensions are limited to certain states (with additional states applying similar measures) businesses operating in Germany should contact their local authority or consult a VAT specialist for up-to-date advice.
An VAT extension to the extension
The current relief measures follow similar VAT relief applied to mitigate the economic consequences of Covid. Germany had applied a number of measures to boost the economy, including cutting its VAT rate. The country also made it easier for companies to meet their German import VAT obligations.
German leaders agrees on flood reconstruction package
German Chancellor Angela Merkel says there is consensus on a €30 billion reconstruction fund to help areas affected by flooding.
Some estimates put insured losses resulting from the flood at as much as €5 billion.
The German government also plans to invest in upgrading the country’s emergency warning system.
Note also that a recent global climate change report suggests that extreme storms and flooding will become more common. In light of the report, taxpayers should pay close attention to regulatory developments around carbon taxes.
Stay up-to-date as VAT regulations change
VAT compliance is complex at the best of times. Moreover, with recent changes to VAT filing deadlines, and the shift to e-invoicing in many jurisdictions, taxpayers need an effective way to stay informed as the VAT regulations shift.
Vatglobal’s technology-driven VAT solution makes compliance simple, even as the filing requirements change. With the support of global VAT specialists, Vatglobal provides a simple solution to the complex problem of VAT compliance.