Questions & Answers
Answers to common questions.
Curated from our articles on tax advisory, statutory audit and legal services — alphabetical, filtered by audience or topic.
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2304 questions · Page 27 / 47
What are the consequences of the elimination of the EEG levy for operators of existing PV systems?
With the elimination of the EEG levy, generation meters will no longer be required from 2023 onwards and can be removed, even if they are leased from the grid operator. This significantly simplifies the annual billing, as the measurement of self-consumed electricity for the levy is no longer necessary.
As of: September 2022
What consequences does classification as wages have for the employer?
If the payment for vehicle advertising qualifies as wages, wage tax must be withheld and remitted. If the employer fails to do so, the tax office may hold the employer liable under wage tax liability rules, as occurred in the case at issue.
As of: February 2020
What are the consequences of being classified as an employment relationship exempt from social security?
No contributions to statutory pension, health, long-term care, or unemployment insurance are payable for this employment relationship. The managing director must arrange retirement provision and health insurance independently, but in return is not required to pay any mandatory contributions. A prior status determination procedure with the Deutsche Rentenversicherung Bund is essential to obtain legal certainty.
As of: January 2017
What are the consequences of the new rules for students and trainees?
Students who begin university studies directly after high school are still considered to be in initial education, which means only limited deduction as special expenses (Sonderausgaben). However, anyone who first completes a genuine vocational training and subsequently studies can claim the study costs as income-related expenses (Werbungskosten). As of 2015, short training programs of less than 18 months no longer qualify for this tax benefit.
As of: October 2014
What are the consequences of a child turning 25 for the tax exemption on a property sale?
Upon completion of the 25th year of age, the child is no longer considered for income tax purposes under § 32 Abs. 4 Satz 1 Nr. 2 EStG. From this point on, providing the apartment to such a child no longer qualifies as use for own residential purposes. If the property is sold within the ten-year speculation period, the capital gain is then taxable.
As of: October 2023
What consequences does the effectiveness of a managing director's removal have for liability?
If the removal is effective, the former managing director's responsibility for tax claims arising thereafter generally ends. However, if the removal is deemed void due to a company burial (Firmenbestattung), the original managing director remains in office and can continue to be held liable for breaches of duty. The effective termination of the office is therefore decisive for delimiting liability.
As of: November 2014
What are the consequences of the new BFH case law for input VAT deduction?
Since a postal address sufficient for correspondence is now adequate, input VAT deduction can no longer be denied solely because the stated address does not match the actual place of business. This significantly facilitates the recognition of invoices and reduces the risk for invoice recipients.
As of: August 2018
What are the consequences of an exemption application filed after 02 January 2023?
After 02 January 2023, exemption from compulsory insurance is no longer possible in statutory health and long-term care insurance. In unemployment insurance, an exemption applied for at a later date only takes effect from the beginning of the calendar month following the application.
As of: September 2022
What are the implications of a court ruling for assessments issued subject to review?
Assessments issued under § 164 or § 165 AO do not automatically become final, even if the BVerfG declares the applicable law constitutional. They may still be amended, but only in favor of the taxpayer, since retroactive tightening is inadmissible on grounds of protecting legitimate expectations. It is therefore advisable to file a request with the tax office to have the assessment declared final.
As of: August 2014
What are the consequences for the taxpayer if a logbook is not recognised?
If the tax office does not recognise the logbook, the only remaining option is the flat-rate calculation under the 1% rule. Particularly in cases of low private use, this can be significantly less favourable than the actual cost calculation based on a logbook.
As of: December 2023
What are the consequences of keeping a logbook for only part of the year when taxing a company car?
If the logbook is not maintained for the entire calendar year, the non-cash benefit from the private use of the company car must be determined using the 1% rule. The trips actually recorded are then disregarded for tax purposes.
As of: July 2014
What are the consequences of an unconscionable exclusion of severance compensation in a GmbH articles of association?
An unconscionable clause in the articles of association is void and has no legal effect. If a shareholder is excluded without compensation on the basis of such a clause, they can demand payment of an appropriate severance amount. GmbH shareholders should review their articles of association accordingly and amend them if necessary to avoid future disputes.
As of: July 2014
What are the consequences of overstating VAT on an invoice?
If an invoice shows an excessive VAT rate, the issuer owes the overstated amount to the tax office. However, the recipient cannot claim any input VAT deduction – not even in the amount of the correct VAT. The invoice must be corrected by the issuer to enable the input VAT deduction.
As of: December 2020
What are the consequences of an undeclared cash payment arrangement for a works contract?
An undeclared cash payment arrangement renders the entire works contract void. According to the case law of the Higher Regional Court of Schleswig-Holstein, this applies even if only part of the remuneration is to be paid without an invoice. The contract violates the German Act to Combat Illicit Employment (Schwarzarbeitsbekämpfungsgesetz) and is therefore unenforceable.
As of: August 2013
What are the consequences of an estimate by the tax office regarding real estate tax?
If the taxpayer fails to submit the real estate tax assessment declaration for an extended period, the tax office will estimate the taxable item. Experience shows that such estimates tend to be unfavorable for the taxpayer. The obligation to file the assessment declaration remains in place despite the estimate.
As of: February 2023
What are the consequences if the tax office reclassifies training costs as wages?
If the assumption of costs is treated as wages, the tax office will assess back wage tax and typically hold the employer liable via a liability notice (Haftungsbescheid). In addition, social security contributions may become due. Employers should therefore document that the training is required by law or collective agreement and was prompted by operational needs.
As of: January 2017
What are the consequences of an invalid termination with modified terms in a small business?
If the termination with modified terms is invalid, the employer must continue to employ the employee under the original, unchanged conditions. In the case decided, the dental practice had to continue employing the dental assistant under her original terms.
As of: March 2016
What are the consequences of a valid termination without notice due to competing activities?
Upon receipt of the termination without notice by the employee, the employment relationship ends immediately, without observing any notice period. In addition, claims for damages and the employer's right of entry under § 61 HGB may apply.
As of: March 2013
What are the consequences of exceeding the EUR 110 limit per person?
The amount exceeding EUR 110 qualifies as wages but may be taxed at a flat rate of 25%. In addition, the input VAT deduction is forfeited for the respective cost share per person once the threshold is exceeded.
As of: December 2019
What happens if extraordinary expenses exceed the total amount of income?
If extraordinary expenses (außergewöhnliche Belastungen) exceed the total amount of income, the excess portion is lost for tax purposes. According to current case law, a carry-forward or carry-back to other assessment periods is not permitted. The statutory provision is not intended to maximize tax relief, but only to ensure appropriate recognition of the special burden in the year it was incurred.
As of: August 2015
What were the consequences of the BFH ruling for the sale of inherited KG interests after more than five years?
If the heir sells an inherited interest only after five years have passed since the date of death, the tax relief under § 35b EStG is excluded, even if the inheritance tax was assessed only shortly beforehand due to lengthy heir identification proceedings. The resulting capital gain is then fully subject to income tax without any reduction.
As of: May 2024
What were the consequences of the FG ruling for the case involving complimentary tickets?
The plaintiff had given complimentary tickets worth 20,000 euros each to business associates and applied flat-rate taxation under § 37b EStG. She deducted the flat-rate tax amount as a business expense. The FG Niedersachsen disallowed the deduction, as the gifts significantly exceeded the 35-euro threshold, and therefore the associated flat-rate tax was also subject to the deduction prohibition.
As of: March 2014
Welche Folgen hätte eine Gleichbehandlung der Preisabschläge für pharmazeutische Unternehmen?
Würde der EuGH eine Gleichbehandlung verlangen, könnten pharmazeutische Unternehmen auch die Abschläge zugunsten privater Krankenversicherungen als Minderung der umsatzsteuerlichen Bemessungsgrundlage geltend machen. Dies würde zu einer entsprechenden Reduzierung der Umsatzsteuerlast führen und Erstattungsansprüche für offene Veranlagungszeiträume eröffnen.
As of: August 2016
What consequences can the final reconciliation of Corona aid have?
After review by the granting authority, the final amount of funding is determined. This may result in confirmation of the original funding, an additional payment in favor of the applicant, or an obligation to repay. Incorrect information from the original application can also be corrected retroactively in this process.
As of: May 2022
What consequences can a cash register inspection have if irregularities are found?
If the auditor identifies discrepancies or irregularities during the cash register inspection, the procedure can transition directly into a full tax audit without prior notice. In addition, violations of the applicable rules may result in fines of up to 25,000 euros.
As of: May 2016
What does the IDW demand regarding the temporal scope of application of the new inheritance tax rules?
The IDW rejects a retroactive application of the new rules as of 1 July 2016 and advocates for prospective application only. If this cannot be implemented, taxpayers should at least be granted an option to choose between the old and new law for the period from 1 July 2016 until the promulgation of the new legislation.
As of: August 2016
Which form of donation receipt is covered?
Both the officially prescribed paper forms and the electronic donation receipt are covered. From 2025, foreign recipients may only use either form after registering in the Zuwendungsempfängerregister (German register of donation recipients).
As of: December 2024
Which wording is mandatory on invoices in reverse-charge cases under § 13b UStG?
The invoice must include the wording "Steuerschuldnerschaft des Leistungsempfängers" (reverse charge). The tax authorities also accept the English term "Reverse-Charge". If the wording is missing, this does not affect input VAT deduction, as a proper invoice is not a prerequisite for deduction in reverse-charge cases.
As of: September 2013
Which allowances apply to spouses and children in cases of inheritance or gift?
Spouses and registered civil partners are entitled to a general allowance of EUR 500,000, while children, stepchildren, adopted children, and children of deceased children receive EUR 400,000. Grandchildren are granted EUR 200,000, and great-grandchildren as well as parents and grandparents (in the case of inheritance) receive EUR 100,000 each. In addition, there is an allowance for household goods (EUR 41,000) and for other movable assets (EUR 12,000).
As of: January 2022
Welche Freibeträge steigen 2026?
Grundfreibetrag, Kinderfreibetrag und weitere Beträge werden 2026 angehoben — die Werte und die Fundstelle finden Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
What allowance applies to company events such as Christmas parties?
Expenses for company events remain exempt from wage tax if the allowance of EUR 110 per employee and event is not exceeded. A maximum of two events per year qualify for this benefit. If the limit is exceeded, the entire amount must be taxed as wages.
As of: October 2013
What is the threshold for gifts to business associates under § 4 Abs. 5 Nr. 1 EStG?
Expenses for gifts to persons who are not employees (e.g., business associates) may only reduce profit if the total acquisition or production costs per recipient and fiscal year do not exceed 35 euros. If this threshold is exceeded, the entire amount is non-deductible for tax purposes.
As of: March 2014
What exemption thresholds apply to the construction withholding tax?
No tax deduction is required if the consideration paid to the respective service provider does not exceed EUR 5,000 per calendar year. If the recipient of the service exclusively generates VAT-exempt rental and leasing turnover pursuant to § 4 Nr. 12 UStG, the threshold increases to EUR 15,000 per calendar year. Once these limits are exceeded, the deduction must be made unless a valid exemption certificate is presented.
As of: May 2023
What deadline applies to the option application under the KöMoG?
The option application must be submitted to the competent Finanzamt at least one month before the start of the new fiscal year. A prior shareholder resolution with at least 75% approval is required. The same one-month deadline also applies to a later withdrawal application.
As of: July 2021
What deadline applies for entering tax allowances on the wage tax card?
Allowances for the current calendar year can only be registered with the tax office until 30 November. Anyone missing this deadline can only claim the relevant expenses via the income tax return. The liquidity benefit during the year is lost as a result.
As of: November 2014
What deadline applies for reporting the exemption application to the Minijob-Zentrale?
The employer must report the exemption application to the Minijob-Zentrale within 42 calendar days, or 6 weeks, of receiving it from the employee. If this deadline is met and the Minijob-Zentrale does not object, the exemption takes retroactive effect from the month of application, but no earlier than the start of employment.
As of: September 2022
What deadline applies when a Steuerberater prepares the 2018 income tax return?
When represented by a Steuerberater (German Certified Tax Advisor), the filing deadline is also extended by two months. For the 2018 income tax return, this means you have until 29 February 2020 to submit it to the tax office.
As of: January 2019
What deadline did the Federal Constitutional Court set for the reform of inheritance tax?
The Federal Constitutional Court had set the legislator a final deadline of end of September 2016 to revise the inheritance tax rules for business heirs. Otherwise, the Karlsruhe judges threatened to entirely strike down the relief provisions for business successors.
As of: September 2016
What deadline must be observed when electronically submitting invoices under the EU VAT refund procedure?
The scanned invoice must be received by the competent authority within the statutory exclusion period. If this deadline is missed, the right to a VAT refund is forfeited. The application must be submitted electronically via the Bundeszentralamt für Steuern (German Federal Central Tax Office).
As of: April 2016
What deadlines apply to the reporting and repayment of the Corona emergency aid?
The reporting deadline has been uniformly extended to 30 November 2020. Any repayments to the account specified in the notice from the competent Bezirksregierung (district government) must be made by 31 March 2021 at the latest.
As of: August 2020
What deadlines apply to the tax return under the OSS procedure?
The tax return must be filed quarterly via the BZSt online portal. The deadlines are: 30 April for Q1, 31 July for Q2, 31 October for Q3, and 31 January of the following year for Q4. A nil return is mandatory even if no relevant turnover was generated in the quarter.
As of: June 2021
Which deadlines must be observed in the VAT refund procedure?
For refund applications within the EU, the general filing deadline is 30 September of the following year. For non-EU countries, deadlines vary and often fall as early as 30 June of the following year. These are strict cut-off deadlines, and a late application results in the permanent loss of the refund claim.
As of: March 2013
What deadlines were originally set for the reporting and repayment of the NRW emergency aid?
Originally, the report was to be submitted to the state government via the digital form by 30 September 2020. The self-determined repayment amount would then have been due by 31 December 2020. These deadlines have become obsolete due to the suspension of the procedure.
As of: July 2020
What deadline extension does the BMF grant to avoid withdrawal taxation?
Under the BMF circular of 17 July 2023, withdrawal taxation is waived on grounds of legitimate expectations if the taxation link to the hidden reserves is restored on other grounds by 31 December 2023. This leaves time to implement a suitable structuring solution.
As of: October 2023
What is the tax function of providing bread rolls and hot beverages on company premises?
Providing these items free of charge serves to create favorable working conditions and has no remuneration function. Accordingly, there is no taxable wage component. The measure is classified as a mere courtesy on the part of the employer.
As of: October 2019
Which assets are excluded from the inheritance tax preferential treatment following the reform?
To combat abuse, recreational and luxury items have generally been excluded from the preferential treatment. This includes, in particular, works of art, luxury yachts, and vintage cars.
As of: September 2016
Which managing director position is the highest paid in Germany?
The highest earners are Chairs of the Management Board, with an average annual salary of around EUR 549,000. This is significantly above the average for all managing director positions.
As of: November 2014
Which companies are affected by the new church tax withholding procedure?
All companies that make payments subject to capital gains tax — such as profit distributions to shareholders — are affected. This expressly includes small corporations such as a one-person GmbH. They too must register with the BZSt for the church tax retrieval procedure (KiStA) and query the religious affiliation of their shareholders.
As of: August 2014
Which arrangements is the new attribution rule intended to prevent?
The rule is designed in particular to prevent a company from being stripped of real estate, after which its shares are sold without triggering a supplementary taxable event, and the original property transaction is subsequently reversed. Accordingly, the attribution rule does not apply to reversed legal transactions or repurchased properties to the extent that this would avoid an acquisition event.
As of: December 2024
Which structuring options avoid withdrawal taxation when commercial infection ceases?
Options include converting into a commercially characterised partnership (e.g. GmbH & Co. KG), expanding the PV system beyond the limits of § 3 Nr. 72 EStG, taking up another commercial activity, or contributing the assets into a commercially active co-entrepreneurship or corporation. Before deciding, it should be examined whether continued tax entanglement is economically sensible.
As of: October 2023