VATLive > Blog > Germany > German switches VAT payers to quarterly returns 2021

German switches VAT payers to quarterly returns 2021

  • Dec 16, 2020 | Richard Asquith

Germany is to allow more small and newly VAT registered foreign businesses to file quarterly VAT returns.

Currently, taxpayers with VAT liabilities above €7,500 per annum and newly registered businesses are automatically put onto monthly German VAT returns. This is an anti-VAT fraud measure. § 18 para. 2 sentence 1 UStG. The newly registered businesses may then switch to the regular quarterly filing schedule the second calendar year after they were registered if there are not compliance issues with their VAT filings.

From 1 January 2021, this will be suspended meaning newly registered businesses will be on quarterly filing immediately. However, the requirement will revert on 1 January 2027.

Also, the threshold for using the VAT cash accounting basis is being raised to €600,000 per annum.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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