Country-specific updates: Germany

E-commerce: The registration notification for OSS is available as of 1 April 2021

The regulations in connection with the e-commerce on the extension of the so-called mini-one-stop shop (MOSS) to a one-stop shop (OSS) should come into force on 1 April 2021, however should apply only from 1 July 2021.

The registration notification (participation in the OSS) is available as of 1 April 2021 and has to be filed electronically with the German Federal Tax Office until 30 June 2021 (i.e. the beginning of the taxation period).

The participation in the OSS procedure is not obligatory but optional (same approach like in MOSS procedure). However, the participation in OSS enables the taxable person to declare and pay VAT which is due in several EU Member States centrally in only one Member State. This avoids the necessity to register in several Member States for VAT purposes.

DLA Piper comment: The envisaged regulations and simplifications are to be welcomed, as they e.g., allow online/shipping traders to avoid registrations in multiple EU Member States and allow to register centrally in only one EU Member State. Further, legal certainty should be created due to uniform threshold values and simple legal application in invoicing. This is great news from an administrative, cost and IT perspective.

On the other hand ERP and billing systems need to be accordingly adapted. Taxable persons who would like to use OSS need thetrefore, to deal with the new provisions at an early stage and to register with the respecive tax authority in time.

Special provision for travel services should not apply to travel services provided by third country taxable persons

The German Federal Ministry of Finance has issued a statement pursuant to which the special provision regarding travel services (sec. 25 of the German VAT Act) should not apply to travel services provided by third counftry taxable persons.

DLA Piper comment: The German Federal Ministry of Finance has not provided any explanation on this statement. However, the consequences might be severe: As in such cases the general provisions of the VAT law would apply, it cannot be assumed that all services provided would qualify as one composite service. On the contrary, the services might be separate services having their place of service in different locations. This would not only lead to the obligation to register in different countries but also to file and pay there VAT.

Concerned persons should revisit their compliance procedures on this basis.