German exemption on corrected intra-Community supplies in 2023

German VAT changes for 2023 include changes in the VAT rates, the exemption on intra-Community supplies, and reverse charge.

Exemption on corrected intra-Community supplies

This amendment concerns the removal of a time limit requirement. Tax authorities changed their previous requirement to accept the intra-Community exemption, which consisted of meeting the legal deadline and submitting the corrective ESL return within one month after discovering the error. Otherwise, if the ESL return or the corrective ESL return were submitted after the one-month deadline, the tax authorities considered that the intra-Community exemption does not apply.

This condition to accept the intra-Community exemption on corrective ESL returns was removed. However, take into account the following:

  • To allow the intra-Community exemption, it is still required to submit a corrective ESL return for the correspondent reporting period where the intra-Community transaction occurred.
  • Also, if the corrective ESL return is submitted later than one month from the discovery of the mistake, the tax authorities may impose an administrative fine for non-compliance – although this would no longer imply the rejection of the exemption.

Have a look at our article on intra-Community transactions and learn more about their VAT treatment.

Domestic reverse charge on fuel emissions

Germany extends the domestic reverse charge mechanism on specific goods and services to include within the transfer of emission allowances on fuel emissions. Find here the Act regulating this topic.

Check in our VAT manual the reverse charge rules in Germany.

Related VAT news

We use cookies to offer an improved online experience. More information