The Annual Tax Act 2020 will implement changes to transpose the 2nd stage of the digital package into German law with effect from July 1, 2021, which are intended to facilitate cross-border online trade.
The digital package is intended to implement the country of destination principle for supplies to private individuals. The country of destination principle states that VAT is to be levied in the EU member state in which consumption actually takes place.
Registration for VAT purposes in the country of destination is to be avoided for the supplying company. The „one-stop-shop“ procedure is to be extended. This is intended to make it possible for companies to register for VAT purposes only in the EU member state in which they are established. As a result, the declaration obligations for domestic and foreign sales only have to be fulfilled in the registered EU member state.
The brochure „The One-Stop-Shop (01.07.2021)“ gives you a comprehensive overview of the new procedures that apply to online trading.