Germany faces significant VAT calculation errors due to inaccurate product master data, as illustrated by recent court rulings and rate changes. The article explains how misclassifications arise, the impact of legal updates such as Austria's new 4.9% rate, and recommends centralised VAT classification systems to avoid costly mistakes.
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eClear · 8 days ago
Germany's Annual Tax Act 2026 introduces significant VAT reforms, including a shift to application-based VAT grouping and changes to non-monetary supply taxation. Key changes take effect from 1 January 2027, with the VAT grouping reform applying from 1 January 2029, requiring businesses to apply electronically.
VatCompliance · 22 days ago
The article provides a comprehensive overview of the 2026 VAT registration thresholds for 12 major European markets, highlighting key changes such as the UK’s increase to £90,000 on 1 April 2024 and Austria’s rise to €42,000. It explains the different threshold structures—universal, sector‑split, and zero—across countries, and outlines the EU One‑Stop Shop (OSS) and Import OSS (IOSS) schemes for cross‑border e‑commerce. The guide serves as a practical reference for businesses planning compliance in 2026.
Meridian Global Services · about 1 month ago
Germany proposes to replace its automatic VAT grouping regime with an opt‑in system effective 1 January 2029. The reform requires formal application, expands eligibility to partnerships, and introduces retroactive non‑recognition and increased scrutiny of intra‑group transactions. Businesses must plan ahead to assess the impact on compliance and cash flow.
Eclear · about 1 month ago
The article explains how VAT on food supplements varies across EU member states, highlighting Germany’s split between solid (7%) and liquid (19%) rates and Sweden’s temporary 6% rate until 2027. It stresses the importance of correct Combined Nomenclature classification to apply the right rate and warns that misclassification can trigger back payments and fines.
COMARCH SA · about 1 month ago
The article outlines e‑invoice archiving requirements across the EU, highlighting minimum retention periods, technical format standards, and country‑specific rules. It details upcoming deadlines for Germany’s B2B e‑invoicing mandate and Poland’s KSeF platform, and explains how to maintain compliance with PDF/A, XML, and hybrid formats such as Factur‑X.
NWB · about 2 months ago
The German Federal Ministry of Finance (BMF) issued revised template forms for VAT reverse‑charge and registration purposes effective 9–23 April 2026. The updates remove the service‑seal field and the phrase “This letter was machine‑generated and is valid without signature,” and set a maximum validity of three years for the certificates. Forms USt 1 TH, USt 1 TG and USt 1 TQ can be issued on application or by authority; USt 1 TS and USt 1 TN only on application.
In Germany, the Lower Saxony Fiscal Court ruling classifies capsules of food supplements at a reduced 7% VAT rate, while drinkable supplements are taxed at 19%.
Primary source
Read the full article at eClearThis summary was published on VATfaqs.com on 16 July 2026. It relates to VAT developments in Germany. The original source is eClear.
