Germany has passed a new law, retroactively effective to January 1, 2017, to simplify input VAT deduction procedures for low-value purchases (“invoices for small amounts”). Under Section 15 of the German VAT Act, input VAT deductions can only be claimed by recipients of invoices that meet standardized requirements – for instance, recipient information must be provided, and VAT must be separately stated. The new law greatly relaxes these requirements for “invoices for small amounts.” However, the law does not apply to distance sales, intra-Community supplies of goods, or transactions subject to a reverse charge.
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