News
Tax changes in Germany. Explained as they come.
New legislation, ministry circulars and decisions of the Federal Fiscal Court — and what they mean in practice for companies with an entity in Germany.
In context
What is changing. And who it affects.
German tax law changes constantly — through legislation, circulars from the federal finance ministry and decisions of the Federal Fiscal Court. For a company with an entity in Germany the change itself is rarely the problem; the question is whether it applies to your own business and what deadline comes with it.
This collection puts things in context rather than merely reporting them: what has changed, who it affects and by when something has to be done. The topics follow what actually comes up in looking after foreign-owned companies — from payroll and social security through VAT and filing deadlines and the e-invoicing obligation to permanent establishments and transfer pricing.
Every article concerns the German market and is written for companies, not for private individuals. Use the search and the topic filters to get quickly to the area that concerns you.
All articles
German tax topics.
Current and explained.
Tax assessment notices in Germany: electronic by default from 2027
From 2027, the German tax authorities will make tax assessment notices available electronically as a rule. What this means for deadlines, how to keep paper and what companies should arrange now.
Low-value assets in Germany: Bundesrat proposes immediate write-off up to €1,200
The Bundesrat proposes raising the German immediate write-off threshold for low-value assets from €800 to €1,200 and abolishing the pool account. What applies today and what companies can prepare now.
German social security thresholds 2027: what the draft regulation means for employers
The draft regulation on German social security thresholds for 2027 has been published. The new ceilings, the special increase in health insurance and what employers should check before the turn of the year.
Electronic payroll records in Germany from 2027: What employers should prepare now
Germany’s exemption from keeping supporting payroll records electronically ends in 2026. Find out which documents are affected, how existing records are treated and what employers should prepare for 2027.
Company cars across borders: the employee’s residence decides the VAT
Where an employee lives in a different country from their employer, providing a company car can make VAT due at the employee’s place of residence. Since 1 July 2026 there is no concession.
E-invoicing in Germany: what has to be in place by 1 January 2027
From 2027, companies with more than 800,000 euros in prior-year turnover must issue e-invoices in Germany. The stages, the formats, and the cases that hold up the changeover in practice.
German VAT for foreign companies: what changes in 2027
Anyone storing goods in Germany or supplying private customers here becomes liable to German VAT — with no establishment in the country. From 2027, new registrations again mean two years of monthly returns.
Trade tax: a minimum multiplier of 280% from 2027
From 2027 a nationwide minimum multiplier of 280% applies to trade tax. What changes, who is affected and why an early review is worthwhile.
Input VAT on advance payment invoices: the BFH provides clarity
The Federal Fiscal Court has set out the requirements for deducting input VAT on advance payment invoices more precisely. What that means for investment projects and for invoice verification.
Guest article: market entry in the DACH region — the underestimated HR risks
Guest article by Axel Menzel (Inpact HR): posting, contractor or local employment, the employment contract as a steering instrument, co-determination — and why the exit belongs in the plan from the day you enter.
Tax-free crisis bonus 2026: the Bundesrat halts the EUR 1,000 relief
The planned crisis bonus of up to EUR 1,000, free of tax and social security contributions, has failed in the Bundesrat. What employers need to know now and why payments should wait for the time being.
Transfer pricing documentation: new duties and a 30-day deadline
A transaction matrix, a shorter deadline for producing documentation and duties to submit records unprompted: what the Fourth Bureaucracy Relief Act means for transfer pricing documentation.
EU Inc.: a new European company form — what businesses should know
With "EU Inc." the European Commission is proposing a new European company form: digital incorporation within 48 hours and uniform rules across the single market. What is planned and what stays national.
Artists’ social security levy 2026: annual return due by 31 March
Companies liable to the levy have to report by 31 March 2026 what they paid in 2025 to self-employed artists and journalists. Who is affected and what counts towards the assessment base.
E-invoicing 2026: the timetable to 2028 and what counts now
E-invoicing has been mandatory in German B2B since 2025. What EN 16931 actually requires, which transitional periods run to 2028, and why the XML file decides the input VAT deduction.
Invoice wording in English: the BMF allows other EU languages
Reverse charge, self-billing, margin scheme: mandatory VAT wording may now appear on German invoices in other official EU languages as well. What the BMF circular of 17 September 2025 means for international invoice layouts.
Verification of Payee: the IBAN name check in SEPA payments
Since October 2025 banks check on every SEPA transfer whether the payee's name matches the IBAN. What the traffic light principle means, where master data typically fails, and how companies avoid payment delays.
Minimum wage 2026 and 2027: what it means for mini-jobs and midi-jobs
From 1 January 2026 the minimum wage is EUR 13.90, and from 2027 EUR 14.60. That moves the mini-job threshold to EUR 603 and then EUR 633, and the whole transitional band with it. What employment contracts, payroll and budgeting need now.
Christmas bonus: entitlement, tax and social security
A Christmas bonus is voluntary — until established practice turns it into a legal entitlement. How special payments are treated under employment law, tax law and social security law.
The Christmas party: applying the EUR 110 limit correctly
Up to EUR 110 gross per participant, a staff event stays free of wage tax — as an allowance, and for no more than two events a year. For the input VAT deduction the same amount works as an all-or-nothing threshold.
Christmas gifts: the limits for employees and business partners
EUR 50 per business partner per year, EUR 50 per employee per month, EUR 60 for a personal occasion: which limits apply to benefits in kind, and why the documentation is what decides the outcome in a tax audit.
Artists’ social security levy falls to 4.9 per cent in 2026
From 1 January 2026 the levy rate for the artists' social insurance scheme falls from 5.0 to 4.9 per cent. What that means for companies commissioning artistic and journalistic work.
Special VAT audits: EUR 1.63 billion in additional assessments
Special VAT audits are faster and more targeted than a general tax audit — and they reach companies of every size. Which mistakes come up most often, and why foreign companies with a German registration are watched particularly closely.
Holiday pay in Germany: entitlement, tax and the recreation allowance
Holiday pay is not required by law in Germany, but it is fully subject to tax and social security contributions. How an entitlement arises through established practice, what applies during parental leave and sickness, and why the recreation allowance can be an alternative.
Transfer pricing adjustments and VAT: the open interface
Tax authorities increasingly link transfer pricing adjustments to VAT. What the CJEU cases Arcomet and Högkullen showed in 2025 — and why reliable guidance is still missing.
Immediate investment programme: declining-balance depreciation and a lower corporate tax rate
The Bundesrat gave its approval on 11 July 2025: 30% declining-balance depreciation, corporate income tax down to 10% in stages, a wider research allowance and higher limits for electric company cars. An overview with German-French structures in mind.
Confirming a VAT ID: digital only, through the BZSt
Since 20 July 2025 the Bundeszentralamt für Steuern accepts requests to confirm foreign VAT identification numbers by digital means only. Written and telephone requests no longer have any effect.
Cabinet adopts the immediate investment programme: 46 billion to 2029
On 4 June 2025 the federal cabinet adopted the immediate tax investment programme; the Bundestag followed on 26 June. What the package contains and where it takes effect for German-French companies.
Tax-free overtime: the plan in Germany, the model in France
The coalition agreement provides for tax-free overtime premiums. France has had the model for years — up to EUR 7,500 a year, with relief on social security contributions on top. A comparison for companies with staff in both countries.
HGB size classes: how companies in Germany are classified
Balance sheet total, turnover and headcount decide the size class under the HGB — and with it the accounting, audit and publication obligations. The thresholds at a glance, particularly relevant for French companies in Germany.
Workplace health promotion: EUR 600 per employee free of tax
Under § 3 Nr. 34 EStG, up to EUR 600 per employee per year stays free of tax and social security contributions — provided the measure is certified under the SGB V. Which programmes qualify, where VAT differs, and why a binding ruling is worth having.
The Growth Opportunities Act: the key changes at a glance
Electric company cars up to EUR 70,000, the gift threshold raised to EUR 50, declining-balance depreciation for a limited period, new rules for intra-group financing and mandatory e-invoicing from 2025 — relief worth EUR 3.2 billion.
WhatsApp at Work in Germany: When Messages Justify a Dismissal and When They Do Not
Deceit about an illness, defamation of a colleague, insults in a group chat: four German rulings show when WhatsApp messages can justify a dismissal and when an employer may not use them.
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