Germany imposes anti-fraud monthly VAT filings on shell companies
- 01 November 2014 | Richard Asquith
Germany has acted to reduce the problems of VAT fraud being perpetrated through shell companies acquiring German companies and falsely claiming input VAT.
German monthly VAT filings
Generally, only VAT taxable newly registered companies are required to complete monthly VAT filings for the first two years of their establishment. This is now being extended companies formed to hold legal title to taxable entities in acquisitions of going concerns. This includes the annual German VAT return. In particular, the German tax office wishes to target such shell companies that will eventually provide taxable supplies.