Germany warns that VAT payments received with incorrect references will be subject to penalties

9 July 2019

The German tax authorities have recently written to non-EU businesses informing them that they must now declare a specific payment reference with their VAT payments going forward.

This is because of the German tax authorities facing issues in allocating VAT payments received from these types of businesses, which cause delays in updating VAT accounts and often leads to unnecessary administration work in chasing VAT debts that are already paid.

The German tax authorities warn that companies who fail to comply with this new request face penalties because the VAT payments will not immediately be allocated to their VAT account, and this will be the case regardless of whether the payment is made within the deadline.

LATEST NEWS

EU confirms €3 customs duty and VAT treatment for...

From 1 July 2026, the EU will remove the current customs duty exemption for goods valued at €150 or less. Instead, a temporary €3 customs duty per item...

SEE MORE
VAT news
LATEST NEWS

EU council struggles to agree on the removal of the...

The EU is struggling to finalise changes to its Import One Stop Shop (IOSS) system as part of the 2028 Customs Reforms, with member states divided over plans...

SEE MORE
VAT news
LATEST NEWS

Austria proposes a €2 customs charge on a per parcel...

Austria is proposing to impose a €2 charge on e-commerce low-value imports (under €150) entering Austria from outside the European Union from October...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.