If yes, the following information should be kept in mind:
In principle, every German company is subject by tax law to the obligation to keep and store its books and other necessary electronic records in Germany. The purpose of keeping the books in Germany is to give the tax authorities access to data that is essential for taxation purposes at all times.
As companies increasingly operating on a global scale, larger groups in particular are seeking to centralize their accounting and recording activities for organizational or financial reasons. Already in 2008, the legislator had created the legal framework for companies to be able to relocate and store their electronic accounting worldwide, including countries such as the USA or Switzerland, under certain conditions. Since then, more and more internationally active companies have made use of this option.
The S·K· Business & Investment Guide for Germany gives a useful overview with regard to company formation and business tax as well as employment regulations in Germany. By providing general background information, this booklet will serve as reference guide for your preliminary planning efforts. Our booklet can be found here for download.
The German Bundestag passed new regulations in short cause to facilitate access to the short-time working benefit. The law is planned to come into force in the first half of April 2020.
The short-time work benefit can be applied for online. If necessary, you can already register for it using the following link:
You are welcome to forward your login details to us and we will take care of the application.
The law on the temporary crisis-related improvement of the regulations for short-time work compensation provides for the following measures:
Further requirements for receiving short-time working benefits are:
The notification of short-time work with the labor office must be received by the last day of the month for which short-time work benefit is to be applied for at the latest!
After initially only, the catering trade was to be supported by a reduction in the VAT on food from 19% to 7% due to the severe cuts caused by the pandemic, the governing parties last week agreed overall on a temporary reduction in the VAT to boost domestic demand. The aim is to ease the burden on consumers. Whether this will be achieved remains to be seen. Let us hope for the best. Although the law has not yet been passed, with less than 4 weeks remaining until 1 July 2020, there is an urgent need for companies to act. The systems must be converted by 1 July 2020 - permanent invoices or contracts must be updated.
Furthermore, the parties agreed on extend payment deadline for the import VAT. The import VAT has to be paid by the 26th of the following month.
According to the agreed economic stimulus and crisis package, the following tax rates are to apply from 1 July 2020 to 31 December 2020:
b) What is to be observed
It is now important to ensure that the correct tax rate is applied to all services carried out from 1 July 2020 and shown on the invoice. The decisive factor in determining the correct tax rate is when the turnover is exported.
Time of execution
c) What happens if the wrong tax rate is shown
An incorrect tax statement in invoices or contracts means that the issuer of the invoice must pay the amount shown to the tax office. In contrast, an invoice recipient entitled to deduct input tax may only claim input tax at the legally applicable tax rate.
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