The presumption rules for serving administrative acts are being extended.
Background
The legislator has extended the delivery time requirements for letters. As a result, the presumption rules for the notification of administrative acts in various areas of law also had to be adjusted.
What is changing
To align the presumption rules for serving administrative acts with the extended delivery time requirements, they are being changed from 3 to 4 days.
If the end of the new 4-day period falls on a Saturday, Sunday, or public holiday, the deadline is postponed — as with the previous 3-day period — to the end of the next working day.
Example: A tax assessment is mailed on a Tuesday (4 March). The 4th day would be a Saturday (8 March). The assessment is deemed to have been served on the following Monday (10 March). The appeal period ends at the close of 10 April.
The same applies to the period for filing a lawsuit.
Entry into force
The new rule applies to all administrative acts that are mailed, electronically transmitted, or made available for electronic retrieval after 31 December 2024.
Note
Under the government draft, the notification of a tax assessment on a Saturday was also to become possible. However, the Bundestag did not adopt this provision.
Small business regulation to be reformed
The so-called small business regulation is being revised in several respects. Among other things, entrepreneurs now have the option of claiming the tax exemption in other EU countries.
What is changing
Previously, only entrepreneurs established in Germany could use the small business regulation under § 19 UStG. The new rule now also allows entrepreneurs from other EU countries to apply this regulation in Germany.
For entrepreneurs established in Germany to use the tax exemption in another EU country, a special reporting procedure has been introduced. The Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt) is responsible for this. Participating entrepreneurs must report their turnover electronically to the BZSt on a quarterly basis.
In Germany, the turnover of small businesses is exempt from VAT. Previously, VAT was simply not levied, which technically still meant a tax liability. Now it is a genuine tax exemption without the right to deduct input VAT.
The conditions are that turnover
- did not exceed EUR 25,000 in the previous year and
- does not exceed EUR 100,000 in the current year.
If the lower threshold of EUR 25,000 is exceeded, the regulation can no longer be used in the following year. An upper threshold of EUR 100,000 allows the regulation to continue to be applied in the year in which it is exceeded. However, if turnover exceeds this upper threshold, standard taxation applies from that point onwards.
If an entrepreneur commences a commercial or professional activity, total turnover in the current calendar year must not exceed EUR 25,000. The very turnover that causes the threshold to be exceeded is subject to standard taxation. Turnover generated up to the point of exceedance is tax-exempt.
Note
A new § 34a UStDV is being introduced in the UStDV for simplified invoices issued by small businesses (not to be confused with small-amount invoices).
It is also particularly important that small businesses are not required to issue e-invoices. However, they must be able to receive e-invoices.
Entry into force
Applies from 1 January 2025.
New procedure for digital submission of supporting documents starts on a trial basis
Digitising the submission of supporting documents is intended to simplify the tax return and assessment process. At the end of the year, several tax offices in Bavaria will therefore launch the pilot of the new "RABE" procedure for submitting documents via Mein ELSTER.
With "RABE", a new procedure for referencing supporting documents within the KONSENS network has been developed. The procedure supplements the existing options of submitting documents electronically or by post upon request by the tax offices. In addition, supporting documents will in future be able to be uploaded directly when preparing the income tax return in Mein ELSTER and assigned to specific input fields.
The "RABE" function will be available in Mein ELSTER and other "RABE"-capable software products for the first time when filing the income tax return for the 2023 assessment period.
The pilot of the new "RABE" procedure is expected to start at the end of this year at selected Bavarian tax offices (Augsburg-Stadt, Erlangen, Memmingen-Mindelheim, and Nürnberg Nord). Subsequently, the processing of income tax returns with referenced supporting documents is to be rolled out gradually at all tax offices nationwide.
Frequently asked questions
Frequently asked questions
From when does the 4-day presumption of receipt for tax assessments apply?
The new 4-day presumption of receipt applies to all administrative acts that are mailed, electronically transmitted, or made available for electronic retrieval after 31 December 2024. It replaces the previous 3-day period and has been adjusted to the extended delivery times for postal mail.
What happens if the end of the 4-day period falls on a weekend or public holiday?
If the end of the 4-day period falls on a Saturday, Sunday, or statutory public holiday, the deadline is extended to the end of the next working day. For example, if a tax assessment notice is mailed on a Tuesday and the 4th day would be a Saturday, the notice is deemed served only on the following Monday. The objection and litigation deadlines only begin to run from that day.
Which turnover thresholds apply from 2025 onwards for the small business scheme under § 19 UStG?
Effective 1 January 2025, turnover must not exceed EUR 25,000 in the previous year and EUR 100,000 in the current year. If the prior-year threshold of EUR 25,000 is exceeded, the scheme is not available in the following year. If the EUR 100,000 threshold is exceeded during the current year, standard VAT taxation applies from that point onward.
Can entrepreneurs from other EU countries also use the German small business regulation (Kleinunternehmerregelung)?
Yes, as of 1 January 2025, entrepreneurs established in other EU member states may also apply the Kleinunternehmerregelung in Germany. Conversely, German entrepreneurs can use the VAT exemption in other EU countries, but they must participate in a special notification procedure with the Bundeszentralamt für Steuern (Federal Central Tax Office) and report their turnover electronically on a quarterly basis.
Do small businesses (Kleinunternehmer) have to issue and receive e-invoices from 2025?
Small businesses (Kleinunternehmer) are exempt from the obligation to issue e-invoices. However, they must be able to receive e-invoices. In addition, § 34a UStDV introduced a simplified invoicing rule specifically for small businesses, which should not be confused with the rules for low-value invoices (Kleinbetragsrechnungen).
What is the new "RABE" procedure for digital document submission?
"RABE" is a new procedure for referencing documents within the KONSENS network that simplifies the electronic submission of supporting documents via Mein ELSTER. Documents can be uploaded directly when preparing the income tax return and assigned to individual input fields. The pilot phase will begin at selected Bavarian tax offices for the 2023 assessment period, with a nationwide rollout planned for later.