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 46 / 47
Where must the application for NRW emergency aid be submitted to avoid fraud?
Applications may only be submitted via the official website of the NRW state government at soforthilfe-corona.nrw.de. Fraudulent websites with replicated application forms had been used to harvest data for criminal purposes, which is why payouts were temporarily suspended. Applicants should review search results critically and use only the official URL.
As of: March 2020
Where do I need to register for the authenticated transmission of tax returns?
Registration is carried out via the ELSTER online portal at www.elsteronline.de. There, the required security certificate for authenticated transmission is generated.
As of: October 2012
Where should the notice on online dispute resolution be placed in an online shop?
The notice should appear in a clearly visible location within the legal notice (Impressum) of the online shop, ideally with a clickable link to the ODR platform. It is also advisable to include the text in the general terms and conditions (AGB) to fully comply with the information obligation.
As of: January 2016
Where should the emergency folder be kept?
The folder should be stored in a secure location that is not publicly accessible but can be quickly retrieved in an emergency. At least one trusted person should know where it is kept and understand when and to whom it may be handed over. Often, a Rechtsanwalt (German Attorney-at-Law) or Steuerberater (German Certified Tax Advisor) is also involved.
As of: February 2021
Where does the place of supply shift to when the delivery threshold is exceeded?
Once the delivery threshold applicable in the destination country is exceeded, the place of supply is no longer the country of dispatch but the destination country. From that point on, the sender owes VAT in the destination country and must register and file tax returns there.
As of: April 2016
Where are electronically supplied services to EU private customers taxed as of 01/01/2015?
Since 01/01/2015, the place-of-recipient principle applies to telecommunications, broadcasting, television and electronically supplied services to private customers in the EU. These services are therefore subject to VAT in the customer's country of residence. The supplier must accordingly apply the VAT rates valid in that country.
As of: November 2014
Where is the bank account data for the direct payment mechanism stored?
The Annual Tax Act 2022 created the legal basis for storing bank account details centrally alongside the tax identification number database. This central storage forms the technical foundation enabling government agencies to make payments directly, without any further data collection.
As of: December 2024
Where is the application for property tax remission filed?
The application must be filed with the competent municipality. In the city-states (Berlin, Hamburg, Bremen), however, the tax office (Finanzamt) is responsible.
As of: March 2014
What may the Corona emergency aid be used for?
The Corona emergency aid may only be used to cover operating costs and liabilities, such as bank loans, leasing instalments, business rent or supplier claims. It is intended to bridge liquidity shortfalls that have arisen since 1 March 2020 in connection with the COVID-19 pandemic. Economic difficulties that already existed before this cut-off date are not covered.
As of: May 2020
What should employers use the 2013 grace period for?
The transition period should be used to resolve technical issues with connecting to the ELStAM procedure and to clarify data discrepancies between an employer's own personnel records and the wage tax deduction features provided by the tax authorities.
As of: November 2012
How can you identify the fraudulent email pretending to be from the BZSt?
The emails are sent from the address "bzst.bund@munich.com" and have the subject line "Rückerstattung/ refund". The text announces a completed tax refund, and the attachment is a file named "Steuerbescheid.pdf.rar" containing an executable file "k-12.exe". This is presumed to be malware.
As of: May 2015
What guides the adjustment of the minimum wage?
The adjustment follows, with a time lag, the development of collectively agreed wages, i.e. the increase in the average collectively agreed hourly wage. In addition, the commission has its own scope of discretion.
As of: June 2016
What do payroll tax auditors increasingly focus on with mini-jobs?
Payroll tax auditors are increasingly requesting timesheets for mini-jobbers. Missing records can lead to objections, back payments of social security contributions, and fines. Hour records should therefore be readily available in payroll accounting at all times.
As of: July 2013
What is the current calculation of property tax (Grundsteuer) in Germany based on?
Grundsteuer is calculated on the basis of standard assessed values (Einheitswerte), which reflect market conditions from 1964 in West Germany and from 1935 in East Germany. These outdated valuation parameters cause significant distortions between the actual market value and the taxable base.
As of: March 2018
What does the ruling of the Finanzgericht Münster of 16 May 2013 (Az. 2 K 3030/11) address?
In this ruling, the Finanzgericht Münster clarified that additional estimates in cases of deficiencies in electronic cash register accounting are generally capped at the highest net profit rates of the official guideline rates (Richtsatzsammlung). Higher estimates are only permissible if special grounds are presented in a comprehensible manner. The ruling thus strengthens the legal position of taxpayers against excessive estimated assessments.
As of: May 2014
What should you watch out for regarding phishing emails related to Corona aid?
In connection with applying for and repaying Corona aid, digital fraud attempts are on the rise. Official emails concerning NRW emergency aid are sent exclusively from noreply@soforthilfe-corona.nrw.de. Recipients should always verify the sender address and, when in doubt, consult their Steuerberater (German Certified Tax Advisor) before clicking links or submitting data.
As of: November 2020
What should be considered for powers of attorney in the emergency folder?
Powers of attorney must be formally correct and clearly worded so that banks and insurers accept them without objection. We recommend having the documents reviewed in advance by the respective bank or insurance company. This applies in particular to healthcare proxies, care directives, and banking powers of attorney.
As of: February 2021
Worauf muss ich bei einer offenen Ladenkasse achten?
Die offene Ladenkasse steht verstärkt im Prüfungsfokus — worauf es bei den Aufzeichnungen ankommt, lesen Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Worauf müssen Influencer steuerlich achten?
Einnahmen und Sachzuwendungen von Influencern rücken in den Fokus der Finanzverwaltung — was zu versteuern ist, lesen Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
What should be considered when contributing a sole proprietorship to a GmbH?
Both income tax aspects (disclosure of goodwill) and gift tax risks should be carefully reviewed in the context of such a contribution. Particularly in transfers within the family, the potential assumption of a gift to the GmbH must be taken into account. Forward-looking planning with professional tax advice is therefore essential.
As of: June 2009
What should be considered when contractually regulating a ban on private use?
For the tax office to recognise the ban on private use, it must be formulated clearly, unambiguously, and verifiably. A carefully drafted written agreement between employer and employee is therefore essential to secure the tax advantages of this case law.
As of: March 2014
What should be considered when handling candles during the Advent season?
Burning candles, especially on Advent wreaths or Christmas trees, must never be left unattended. Even briefly leaving the room — for instance, to have dinner in the kitchen — can be deemed grossly negligent and may jeopardize insurance coverage. Always extinguish candles before leaving the room.
As of: November 2012
What should buyers of a medical practice pay particular attention to from a tax perspective?
Before the acquisition, buyers should have it examined whether and to what extent the purchase price – particularly the goodwill component – is tax-deductible through depreciation. Since case law in this area is evolving, careful tax and legal structuring of the purchase agreement is essential. Expert advice from a Fachanwalt (German Specialist Attorney) for tax law is highly recommended.
As of: April 2007
What is the basis of minimum dismissal protection outside the KSchG?
Minimum dismissal protection is based on the general principles of civil law, in particular good faith (§ 242 BGB) and the prohibition of immoral dismissals (§ 138 BGB). Dismissals must therefore not be arbitrary, contrary to good faith, or discriminatory, even where the KSchG does not apply.
As of: March 2016
What is the basis for deducting work-related expenses despite tax-exempt wage replacement benefits?
In its ruling of 23 November 2000 (VI R 93/98) on bankruptcy compensation (Konkursausfallgeld), the BFH held that § 3c EStG does not preclude the deduction of work-related expenses, as there is no direct economic link between the expenses and the wage replacement benefit. According to the prevailing view, this case law also applies to insolvency benefits (Insolvenzgeld).
As of: September 2022
What is the difference compared to the treatment of civil litigation costs?
According to BFH case law, civil litigation costs may, under certain circumstances, be deductible as außergewöhnliche Belastung (extraordinary expenses) if the proceedings were unavoidable for the taxpayer. In criminal proceedings involving intentional offenses, this unavoidability is lacking, as the taxpayer caused the situation through their own conduct.
As of: September 2013
What is the tax difference between food supplements and medicinal products?
Food supplements within the meaning of § 1 NemV are classified as foodstuffs and fall under the deduction ban for dietary nutrition. Medicinal products within the meaning of § 2 AMG, by contrast, can be claimed for tax purposes as illness-related expenses. The classification of the product is therefore decisive for its tax treatment.
As of: August 2015
How do gifts and promotional giveaways differ for tax purposes?
Gifts to business associates are only deductible as business expenses if the acquisition costs per recipient and year do not exceed 35 euros net. Promotional giveaways (Streuartikel) are advertising items worth up to 10 euros net per piece; they do not qualify as gifts in the tax sense and are not subject to the recipient documentation requirement.
As of: July 2013
How do partial services and advance payments differ for VAT purposes?
Partial services only exist for economically separable services with a corresponding agreement, separate acceptance, and separate invoicing. In this case, the VAT rate applicable at the time of acceptance of the individual partial service applies. For advance payments, by contrast, the VAT rate at the time of acceptance of the entire completed work is decisive.
As of: July 2020
How does the BFH distinguish between property developers and general contractors for VAT purposes?
Property developers (Bauträger) supply developed real estate and therefore do not render construction services within the meaning of § 13b UStG. General contractors, by contrast, render construction services to their client and owe VAT also on the construction services received within the supply chain. Accordingly, the reverse-charge mechanism applies only to the general contractor.
As of: December 2013
How does carving a fodder beet differ from carving a pumpkin?
The fodder beet is considerably harder and tougher than a pumpkin, making it more difficult to work with. Furthermore, the beet is not cut all the way through; instead, the motifs are only carved into the surface so that the thin wall glows red when illuminated. Holes that go right through are therefore considered a flaw.
As of: November 2018
How does selling a collection 'en bloc' differ from selling individual items?
According to BFH case law, the one-off sale of a private collection as a whole ('en bloc') qualifies as VAT-exempt asset management. By contrast, the ongoing sale of individual items over an extended period constitutes a sustained entrepreneurial activity. This distinction was decisive for the VAT liability in the ruling of the FG Köln.
As of: May 2015
Worin unterscheidet sich die Abrechnung der Arzneimittel-Preisabschläge bei GKV und PKV?
Bei gesetzlich Versicherten rechnet die Apotheke direkt zum verminderten Preis mit der Krankenkasse ab und erhält den Abschlag vom pharmazeutischen Unternehmen (ggf. über den Großhändler) erstattet. Bei Privatpatienten wird der volle Preis gezahlt und vom Versicherer erstattet; der Pharmaunternehmer erstattet den Abschlag anschließend der privaten Krankenversicherung.
As of: August 2016
How does individual assessment from 2013 onward differ from the previous separate assessment?
Under the former separate assessment, special expenses, extraordinary burdens, and household-related services could be freely allocated between spouses. Under individual assessment, these costs are generally attributed to the spouse who actually bore them economically. However, upon a joint application, an equal 50/50 split is permitted for simplification purposes.
As of: June 2014
How does the one-year useful life differ from the immediate write-off for low-value assets (GWG)?
The immediate write-off for low-value assets is capped at acquisition costs of 800 euros net. Many computer hardware components exceed this threshold and were therefore not eligible for immediate depreciation. With the new one-year useful life, even more expensive devices can now be fully deducted for tax purposes in the year of acquisition.
As of: March 2021
How does a firm analysis differ from a pure success factor analysis?
A firm analysis goes beyond merely evaluating success factors and also includes the practical implementation of the insights gained. It combines diagnostic analysis with concrete measures for safeguarding and enhancing quality in day-to-day firm operations.
As of: March 1997
What is the ruling of the Cologne Tax Court of 20 January 2016 (Az. 2 K 2807/12) about?
The Cologne Tax Court ruled that, in the EU input VAT refund procedure, submitting a scanned copy of the invoice is sufficient. The tax authorities may not deny the input VAT deduction on the grounds that no scanned original invoice was transmitted.
As of: April 2016
What is the purpose of the church tax deduction identifier (KiStAM)?
The KiStAM informs the distributing corporation of the religious affiliation of its shareholders. Based on this information, church tax is withheld and remitted together with the capital gains tax. This implements the automated procedure for deducting church tax on investment income.
As of: September 2016
What is the purpose of the Gelangensbestätigung (entry certificate) for intra-Community supplies?
The Gelangensbestätigung is a documentary proof by which the supplying entrepreneur demonstrates that the goods have actually arrived in another EU member state. It is a prerequisite for the VAT exemption of intra-Community supplies. Without proper proof, the tax exemption is at risk.
As of: October 2013
What is the purpose of an emergency folder?
An emergency folder ensures that important private and business processes can continue in the event of unforeseen incapacity (illness, accident, death). It consolidates all relevant information—such as account details, passwords, powers of attorney and contact persons—in one place. This enables family members or authorized representatives to act quickly when needed.
As of: February 2021
What was the purpose of the original reporting procedure for Corona emergency aid in NRW?
The reporting procedure was intended to determine the company's actual liquidity shortfall during the funding period. Based on this, any repayment amount for the Corona emergency aid received would have been calculated. The self-declaration was submitted via a digital form.
As of: July 2020
Has the feedback procedure for the NRW Corona emergency aid been suspended?
Yes, the state of North Rhine-Westphalia suspended the feedback procedure for the Corona emergency aid as of 14 July 2020. The reason is that some accounting requirements have proven problematic. The procedure will be paused until a nationwide clarification is reached.
As of: July 2020
Was the inheritance tax reform completed by the deadline of 30 June 2016?
No, the deadline set by the Bundesverfassungsgericht (Federal Constitutional Court) of 30 June 2016 was not met. The Bundestag did pass a law in time, but the federal states referred it to the Mediation Committee, so the reform did not enter into force.
As of: September 2016
Was an appeal allowed against the tax court's ruling on clean-up costs?
No, the tax court did not allow an appeal. The decision therefore stands: clean-up costs for a hoarder's house do not reduce the inheritance tax base.
As of: May 2015
Was an appeal allowed against the decision of the FG Münster?
No, the FG Münster did not allow an appeal. The court reasoned that the rulings are individual case decisions in which only established case law is applied.
As of: March 2023
Replacement value or current value: What are customers entitled to for damage caused by cleaning?
The BGH has clarified that compensation for damage caused by cleaning must be based on the replacement value, not the current (depreciated) value. This ensures the customer is placed in a position to acquire an equivalent garment.
As of: July 2013
At what point must occupational disability exist in order to qualify for the allowance under § 16 EStG?
Occupational disability within the meaning of social insurance law must exist at the time of the disposal transaction, i.e. the sale of the business. If recovery occurs in the meantime and occupational disability no longer exists, the entitlement to the allowance lapses, unless the 55th year of age has been completed.
As of: November 2022
Do cosmetic repairs count toward acquisition-related production costs?
Yes. In its ruling of 14 June 2016 (IX R 22/15), the BFH held that cosmetic repairs such as painting work do not typically qualify as recurring annual maintenance. They must therefore be included when assessing the 15% threshold.
As of: June 2023
Do pension payments or annuities count when determining the center of activity for a home office?
No. When examining whether the home office constitutes the center of all business and professional activity (§ 4 Abs. 5 Satz 1 Nr. 6b Satz 2 EStG), pension payments under § 19 Abs. 2 Satz 2 Nr. 1 Buchst. a EStG are disregarded (BFH ruling of 11.11.2014 – VIII R 3/12). Legal commentary extends this principle to annuity income as well. Only income requiring active engagement during the assessment year is relevant.
As of: September 2023
Do voucher receipts from highway rest stop restrooms qualify as documented incidental travel expenses?
No. When using sanitary facilities at highway rest stops, only the actual usage fees may be recorded. Amounts issued as vouchers (Wertbons) cannot be claimed as incidental travel expenses.
As of: December 2012